Reference no: EM131775539
Government and Non for Profit Accounting
1. The city of Bowie handed you the accountant , the following information for one of its township on January 1st 2016.
Budget Information
Inflows
Estimated property tax 10,500,000
Estimated fines and taxes 500,000
Bond Issuance 4,000,000
Total 15,000,000
Outflows
Estimated operating cost 1,500,000
Outlay for Infrastructure 12,000,000
Bond and Interest repayment 375,000
Transfer out 500,000
Total 14,375,000
Through out the year, the township had the following transactions in general, capital project and debt service funds:
1/15/2016 : the capital project fund levied property taxes in the amount of $10,600,000 with expectation that $100,000 will be collectible.
2/15/2016 : The Capital project fund collected $5,100,000 of the taxes levied on 1/15/2016.
2/15/2016 The general fund paid salaries and other admin cost totaling $475,000.
2/18/2016 :Capital project fund signed a contract to construct a small bridge, the bridge is expected to cost $11,500,000
3/1/2016 :Capital project fund issued a 5 % serial bond with face amount of $4,000,000 at 101. The premium was transferred to the debt service fund.
4/18/2016 :The capital project fund made the first installment payment in the amount of $6,900,000 towards the construction of the bridge.
4/30/2016 : general fund paid salaries and other admin cost totaling $500,000.
7/31/2016 General fund collect fines and penalties totaling $475,000.
8/1/2016 Capital project fund transfer $375,000 to the debt service fund to cover payments associated with the bond.
9/1/2016 Debt service fund made first payment on bonds $375,000 (principal $300,000 and Interest $75,000)
10/15/2016 The capital project fund collected $5,450,000 on taxes levied on 1/15/2016, the remainder was deemed worthless and was written off.
11/15/2016 Capital project fund paid the remainder of the due on the construction of the bridge to the contractor.
12/15/2016 Genral fund paid salariesand admin cost totaling $530,000.
12/31/2016 Interest due on the bond total $40,000 . Payment is not due until 3/1/2017. Required :
1. Prepare the entry to record the budget for 2016
2. Prepare the entries to record the above transaction throughout the year, Entries should be made on the Fund statement and Government wide statement.
3. Prepare the necessary closing entries for the fund statement.