Reference no: EM132719668
Selected transactions of the City of Livingston General Fund for the 2019 fiscal year are presented on the following page. All amounts are in thousands of dollars.
1. The City Council approved the following budget for the fiscal year:
Appropriations ......................................................................................... 14,000
Estimated Revenues ................................................................................. 12,000
Of these amounts, K8,000 is for operating expenditures and K10,000 is for property tax revenues.
2. The property tax levy was recorded, K10,000, of which 3% will probably prove uncollectible.
3. The city ordered K200 in supplies.
4. The City borrowed K500 from the Blount National Bank on a two-month, 6% note.
5. Cash receipts were (see entry #2):
Property Taxes ......................................................................................... 8,500
License and Permits ................................................................................. 150
Total Receipts .................................................................................... 8,650
6. The City Council revised the budget (see entry #1). Appropriations were reduced K3,000 and Estimated Revenues were reduced K2,000 (Appropriations for Expenditures - Operating were reduced K1,000; property tax revenues were not affected).
7. Of the previous supplies order (Entry #3), 75% of the order was received. The actual cost of the goods received was K135. The amount due the vendor will be paid at a later date.
8. City employees were paid, K25.
9. The city ordered a new police car. The estimated cost is K21.
10. The City repaid the short-term note (see entry #4) when due.
11. Wrote off K100 of taxes receivable as uncollectible (see entry #2).
12. Paid K12 to the Special Revenue Fund to repay it for General Fund employee salaries that were inadvertently recorded as expenditures of that fund.
13. The city received the police car (see entry #9). The actual cost was K22. The vendor will be paid at a later date.
14. The city collected K50 for licenses.
15. The city paid K157 on account.
Requirements:
Problem 1. Prepare the general ledger journal entries for the transactions. If no entry is required, do not leave it blank. State "No Entry Required" and briefly explain why.
Problem 2. Indicate the effects of the transaction on the accounting equations for the General Fund and the General Capital Assets and General Long-Term Liabilities accounts. If a transaction has no effect on a particular element, use "NE".