ACCOUNTING FOR GOVERNMENTAL OPERATING ACTIVITIES: TRANSACTION ACCOUNTING GOVERNMENT-WIDE AND FUNDS

Transcription

1 CHAPTER 4: ACCOUNTING FOR GOVERNMENTAL OPERATING ACTIVITIES: TRANSACTION ACCOUNTING GOVERNMENT-WIDE AND FUNDS b. 6. a. 2. c. 7. d. 3. c. 8. c. 4. d. 9. b. 5. b. 10. a a. CITY OF STONEY CREEK JOURNAL ENTRIES GENERAL LEDGER SUBSIDIARY LEDGER Debits Credits Debits Credits (1) ESTIMATED REVENUES 2,674,000 APPROPRIATIONS 2,593,000 FUND BALANCE 81,000 Revenues Ledger: TAXES 1,943,000 LICENSES AND PERMITS 372,000 INTERGOVERNMENTAL REVENUE 297,000 MISCELLANEOUS REVENUES 62,000 Appropriations Ledger: GENERAL GOVERNMENT 471,000 PUBLIC SAFETY 786,000 PUBLIC WORKS 650,000 HEALTH AND WELFARE 600,000 MISCELLANEOUS APPROPRIATIONS 86,000 (2) ENCUMBRANCES ,000 RESERVE FOR ENCUMBRANCES ,000 Encumbrances Ledger: GENERAL GOVERNMENT 58,000 PUBLIC SAFETY 201,000 PUBLIC WORKS 392,000 HEALTH AND WELFARE 160,000 MISCELLANEOUS APPROPRIATIONS 71,000 34

2 GENERAL LEDGER SUBSIDIARY LEDGER Debits Credits Debits Credits (3) TAXES RECEIVABLE CURRENT 2,005,000 ESTIMATED UNCOLLEC- TIBLE CURRENT TAXES 62,000 REVENUES 1,943,000 Revenues Ledger: TAXES 1,943,000 TAXES RECEIVABLE CURRENT 2,005,000 ESTIMATED UNCOLLEC- TIBLE CURRENT TAXES 62,000 GENERAL REVENUES PROPERTY TAXES 1,943,000 General Fund and (4) CASH 1,591,000 TAXES RECEIVABLE DELINQUENT 132,000 TAXES RECEIVABLE CURRENT 1,459,000 GENERAL LEDGER SUBSIDIARY LEDGER Debits Credits Debits Credits (5) EXPENDITURES ,699,100 VOUCHERS PAYABLE 1,699,100 Expenditures Ledger: GENERAL GOVERNMENT 411,000 PUBLIC SAFETY 584,000 PUBLIC WORKS 254,000 HEALTH AND WELFARE 439,000 MISCELLANEOUS APPROPRIATIONS 11,100 EXPENSES GENERAL GOVERNMENT* 422,100 EXPENSES PUBLIC SAFETY 584,000 EXPENSES PUBLIC WORKS 254,000 EXPENSES HEALTH AND 35

3 WELFARE 439,000 VOUCHERS PAYABLE 1,699,100 *assuming Miscellaneous Appropriations relate to General Government (6) At beginning of 2005 to reestablish encumbrances: ENCUMBRANCES ,000 RESERVE FOR ENCUMBRANCES ,000 Encumbrances Ledger 2004: PUBLIC SAFETY 14,000 GENERAL LEDGER SUBSIDIARY LEDGER Debits Credits Debits Credits RESERVE FOR ENCUM- BRANCES ,000 ENCUMBRANCES ,000 Encumbrances Ledger 2004: PUBLIC SAFETY 14,000 EXPENDITURES ,000 EXPENDITURES VOUCHERS PAYABLE 14,470 Expenditures Ledger 2005: PUBLIC SAFETY 470 Expenditures Ledger 2004: PUBLIC SAFETY 14,000 EXPENSES PUBLIC SAFETY 14,470 VOUCHERS PAYABLE 14,470 (7) RESERVE FOR ENCUM- BRANCES ,000 ENCUMBRANCES ,000 EXPENDITURES ,100 VOUCHERS PAYABLE 802,100 36

4 GENERAL LEDGER SUBSIDIARY LEDGER Debit Credit Debit Credit Expenditures Ledger: GENERAL GOVERNMENT 52,700 PUBLIC SAFETY 187,800 PUBLIC WORKS 360,000 HEALTH AND WELFARE 130,600 MISCELLANEOUS APPROPRIATIONS 71,000 Encumbrances Ledger: GENERAL GOVERNMENT 52,200 PUBLIC SAFETY 189,700 PUBLIC WORKS 357,000 HEALTH AND WELFARE 130,100 MISCELLANEOUS APPROPRIATIONS 71,000 EXPENSES GENERAL GOVERNMENT 123,700 EXPENSES PUBLIC SAFETY 187,800 EXPENSES PUBLIC WORKS 360,000 EXPENSES HEALTH AND WELFARE 130,600 VOUCHERS PAYABLE 802,100 (8) CASH 738,000 REVENUES 738,000 Revenues Ledger: LICENSES AND PERMITS 373,000 INTERGOVERNMENTAL REVENUE 299,000 MISCELLANEOUS REVENUES 66,000 GENERAL LEDGER SUBSIDIARY LEDGER CASH 738,000 PROGRAM REVENUES- GENERAL GOVERNMENT- CHARGES FOR SERVICES 373,000 PROGRAM REVENUES- PUBLIC SAFETY- OPERATING GRANTS AND CONTRIBUTIONS 299,000 GENERAL REVENUES-MISC. 66,000 Debit Credit Debit Credit 37

5 General Fund and (9) VOUCHERS PAYABLE 2,475,000 CASH 2,475,000 Note: The Governmental Activities ledgers are not shown here. CITY OF STONEY CREEK GENERAL FUND REVENUE LEDGER (NOT REQUIRED) ESTIMATED REVENUES REVENUES BALANCE Debit (Credit) TAXES (1) 1,943,000 1,943,000 (3) 1,943, LICENSES AND PERMITS (1) 372, ,000 (8) 373,000 (1,000) INTERGOVERNMENTAL REVENUE (1) 297, ,000 (8) 299,000 (2,000) MISCELLANEOUS REVENUES (1) 62,000 62,000 (8) 66,000 (4,000) GENERAL FUND APPROPRIATIONS/EXPENDITURES LEDGER (NOT REQUIRED) AVAILABLE TRANSACTION APPROPRIATION ENCUMBRANCE EXPENDITURE BALANCE GENERAL GOVERNMENT 1 471, , , , ,000 2,000 7 (52,200) 52,700 1,500 38

6 PUBLIC SAFETY 1 786, , , , ,000 1,000 6 (Note A) (189,700) 187,800 2,430 PUBLIC WORKS 1 650, , , , ,000 4,000 7 (357,000) 360,000 1,000 HEALTH AND WELFARE 1 600, , , , ,000 1,000 7 (130,100) 130, MISCELLANEOUS APPROPRIATIONS 1 86,000 86, ,000 15, ,100 3,900 7 (71,000) 71,000 3,900 Note A: The Public Safety account shown here is for In addition, a credit of $14,000 would be made to the Public Safety subsidiary account for 2004, at which time that account would be placed in the deadfile with other 2004 subsidiary accounts that had been retired at the end of that fiscal year. b. CITY OF STONEY CREEK GENERAL FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2005 VARIANCE BUDGET WITH FINAL (ORIGINAL BUDGET AND POSITIVE FINAL) ACTUAL * (NEGATIVE) BUDGETARY FUND BALANCE, 1/1 $ 82,900 $ 82,900 $ RESOURCES (INFLOWS): TAXES 1,943,000 1,943, LICENSES AND PERMITS 372, ,000 1,000 INTERGOVERNMENTAL REVENUE 297, ,000 2,000 MISCELLANEOUS REVENUES 62,000 66,000 4,000 AMOUNTS AVAILABLE FOR APPROPROPRIATION $2,756,900 $2,763,900 $ 7,000 39

7 CHARGES TO APPROPRIATIONS (OUTFLOWS): GENERAL GOVERNMENT $ 471,000 $ 469,500 $ (1,500) PUBLIC SAFETY 786, ,570 (2,430) PUBLIC WORKS 650, ,000 (1,000) HEALTH AND WELFARE 600, ,500 (500) MISCELLANEOUS APPROP. 86,000 82,100 (3,900) TOTAL CHARGES TO APPROPRIATIONS $2,593,000 $2,583,670 $ (9,330) BUDGETARY FUND BALANCE, 12/31 $ 163,900 $ 180,230 $ 16,330 *NOTE: THE ACTUAL EXPENDITURES IN THIS STATEMENT INCLUDE ENCUMBRANCES OF 2005 APPROPRIATIONS OUTSTANDING AT YEAR-END, BUT DO NOT INCLUDE THE EXPENDITURES OF THE 2004 APPROPRIATIONS RECORDED IN ENTRY PART A: a. ROMULUS COUNTY JOURNAL ENTRIES FY 2005 Debits Credits (1) ESTIMATED REVENUES 3,170,000 APPROPRIATIONS 3,100,000 FUND BALANCE 70,000 (2) CASH 294,000 EXPENDITURES ,000 TAX ANTICIPATION NOTES PAYABLE 300,000 (COMPUTATION OF DISCOUNT: $300,000 X.06 X 1/3 YEAR = $6,000.) CASH 294,000 INTEREST EXPENSE 6,000 TAX ANTICIPATION NOTES PAYABLE 300,000 (3) TAXES RECEIVABLE CURRENT 2,150,000 ESTIMATED UNCOLLECTIBLE CURRENT TAXES 86,000 REVENUES 2,064,000 (COMPUTATIONS: $43,000,000 ASSESSED VALUATION X $5.00 TAX RATE PER $100 = $2,150,000 GROSS LEVY; $2,150,000 GROSS LEVY X.04 = $86,000 ESTIMATED UNCOLLECTIBLE.) 40

8 Debits Credits TAXES RECEIVABLE CURRENT 2,150,000 ESTIMATED UNCOLLECTIBLE CURRENT TAXES 86,000 GENERAL REVENUES PROPERTY TAXES 2,064,000 (4) ENCUMBRANCES ,027,000 RESERVE FOR ENCUMBRANCES ,027,000 General Fund and (5) CASH 1,387,240 TAXES RECEIVABLE CURRENT 1,034,000 TAXES RECEIVABLE DELINQUENT 340,000 INTEREST AND PENALTIES RECEIVABLE 13,240 INTEREST AND PENALTIES RECEIVABLE 15,230 REVENUES 15,230 INTEREST AND PENALTIES RECEIVABLE 15,230 GENERAL REVENUES INTEREST ON TAXES 15,230 Debits Credits (6) EXPENDITURES ,070 DUE TO FEDERAL GOVERNMENT 98,000 DUE TO STATE GOVERNMENT 20,000 CASH 363,070 EXPENSES (Itemize functions) 481,070 DUE TO FEDERAL GOVERNMENT 98,000 DUE TO STATE GOVERNMENT 20,000 CASH 363,070 (7) EXPENDITURES ,800 DUE TO FEDERAL GOVERNMENT 36,800 EXPENSES (Itemize functions) 36,800 DUE TO FEDERAL GOVERNMENT 36,800 41

9 (8) CASH 339,000 REVENUES 339,000 CASH 339,000 REVENUES (itemize sources) 339,000 Debits Credits General Fund and (9) DUE TO FEDERAL GOVERNMENT 194,290 DUE TO STATE GOVERNMENT 20,000 VOUCHERS PAYABLE 214,290 (10) RESERVE FOR ENCUMBRANCES ,800 ENCUMBRANCES ,800 EXPENDITURES ,900 VOUCHERS PAYABLE 894,900 EXPENSES (itemize functions) 894,900 VOUCHERS PAYABLE 894,900 (11) VOUCHERS PAYABLE 1,107,090 CASH 1,099,060 EXPENDITURES ,030 VOUCHERS PAYABLE 1,107,090 CASH 1,099,060 EXPENSES (itemize functions) 8,030 General Fund and (12) TAX ANTICIPATION NOTES PAYABLE 300,000 CASH 300,000 42

10 b. ROMULUS C0UNTY GENERAL FUND INTERIM BALANCE SHEET, OCTOBER 31, 2004 ASSETS AND RESOURCES CASH $ 351,110 TAXES RECEIVABLE CURRENT $1,116,000 LESS: ESTIMATED UNCOLLECTIBLE 86,000 1,030,000 TAXES RECEIVABLE DELINQUENT 243,000 LESS: ESTIMATED UNCOLLECTIBLE 189,000 54,000 INTEREST AND PENALTIES RECEIVABLE 28,270 LESS: ESTIMATED UNCOLLECTIBLE 11,160 17,110 INVENTORY OF SUPPLIES 16,100 TOTAL ASSETS 1,468,320 ESTIMATED REVENUES 3,170,000 LESS: REVENUES 2,418, ,770 TOTAL ASSETS AND RESOURCES $2,220,090 LIABILITIES AND FUND EQUITY LIABILITIES: VOUCHERS PAYABLE $ 150,600 FUND EQUITY: APPROPRIATIONS $3,100,000 LESS: EXPENDITURES $1,410,740 ENCUMBRANCES 136,200 1,546,940 AVAILABLE APPROPRIATIONS 1,553,060 RESERVE FOR ENCUMBRANCES 136,200 RESERVE FOR INVENTORY OF SUPPLIES 16,100 TOTAL RESERVED FUND EQUITY 152,300 FUND BALANCE 364,130 TOTAL FUND EQUITY 2,069,490 TOTAL LIABILITIES AND FUND EQUITY $ 2,220, PART B: a. Debits Credits (1) FUND BALANCE 100,000 ESTIMATED REVENUES 100,000 (THIS ADJUSTS THE ORIGINAL BUDGETARY INCREASE OF $70,000 IN FUND BALANCE TO A NET DECREASE OF $30,000.) (2) ENCUMBRANCES ,032,000 RESERVE FOR ENCUMBRANCES ,032,000 43

11 General Fund and (3) TAXES RECEIVABLE-DELINQUENT 6,500 INTEREST AND PENALTIES RECEIVABLE 1,340 ESTIMATED UNCOLLECTIBLE TAXES DELINQUENT 6,500 ESTIMATED UNCOLLECTIBLE INTEREST AND PENALTIES 1,340 (THIS ENTRY REVERSES THE WRITE-OFF ENTRY AND PLACES THE RECEIVABLES UNDER ACCOUNTING CONTROL AGAIN.) INTEREST AND PENALTIES RECEIVABLE 270 REVENUES (General Revenues in Governmental Activities) 270 (TO RECORD INTEREST AND PENALTIES ACCRUED AND COLLECTED.) CASH 8,110 TAXES RECEIVABLE DELINQUENT 6,500 INTEREST AND PENALTIES RECEIVABLE 1,610 (4) EXPENDITURES ,420 DUE TO FEDERAL GOVERNMENT 68,400 DUE TO STATE GOVERNMENT 14,400 CASH 255,620 EXPENSES-VARIOUS 338,420 DUE TO FEDERAL GOVERNMENT 68,400 DUE TO STATE GOVERNMENT 14,400 CASH 255,620 (5) EXPENDITURES ,890 DUE TO FEDERAL GOVERNMENT 25,890 EXPENSES-VARIOUS 25,890 DUE TO FEDERAL GOVERNMENT 25,890 General Fund and (6) TAXES RECEIVABLE CURRENT 25,000 REVENUES (General Revenues at Governmental Activities) 25,000 ($500,000 X $5.00 PER $100) 44

12 General Fund and (7) CASH 1,571,300 TAXES RECEIVABLE CURRENT 927,000 TAXES RECEIVABLE DELINQUENT 43,270 INTEREST AND PENALTIES RECEIVABLE 7,330 REVENUES (VARIOUS AT G-W LEVEL) 593,700 General Fund and (8) INTEREST AND PENALTIES RECEIVABLE23,200 ESTIMATED UNCOLLECTIBLE INTEREST AND PENALTIES 6,960 REVENUES (GENERAL REV. AT G-W LEVEL) 16,240 General Fund and (9) TAXES RECEIVABLE DELINQUENT 214,000 EST. UNCOLLECTIBLE TAXES CURRENT86,000 TAXES RECEIVABLE CURRENT 214,000 ESTIMATED UNCOLLECTIBLE TAXES DELINQUENT 86,000 General Fund and (10) DUE TO FEDERAL GOVERNMENT 94,290 DUE TO STATE GOVERNMENT 14,400 VOUCHERS PAYABLE 108,690 (11) RESERVE FOR ENCUMBRANCES ,097,240 EXPENDITURES ,092,670 ENCUMBRANCES ,097,240 VOUCHERS PAYABLE 1,092,670 EXPENSES (VARIOUS) 1,092,670 VOUCHERS PAYABLE 1,092,670 General Fund and (12) ESTIMATED UNCOLLECTIBLE TAXES DELINQUENT 39,940 ESTIMATED UNCOLLECTIBLE INTEREST AND PENALTIES 4,180 TAXES RECEIVABLE DELINQUENT 39,940 INTEREST AND PENALTIES RECEIVABLE 4,180 45

13 (13) INVENTORY OF SUPPLIES 3,000 FUND BALANCE 3,000 EXPENDITURES ,000 RESERVE FOR INVENTORY OF SUPPLIES 3,000 ($19,100 PHYSICAL INVENTORY - $16,100 ALREADY RECORDED = $3,000 INCREASE DUE TO SUPPLIES PURCHASED DURING THE YEAR.) INVENTORY OF SUPPLIES 3,000 EXPENSES (VARIOUS) 3,000 General Fund and (14) VOUCHERS PAYABLE 1,202,600 CASH 1,202,600 b. CLOSING ENTRIES, APRIL 30, 2005 REVENUES 3,053,440 APPROPRIATIONS 3,100,000 ENCUMBRANCES ,960 ESTIMATED REVENUES 3,070,000 EXPENDITURES ,864,720 FUND BALANCE 147,760 REVENUES (VARIOUS) 3,053,440 EXPENSES (VARIOUS) 2,864,720 UNRESTRICTED NET ASSETS 188,720 c. ROMULUS COUNTY GENERAL FUND BALANCE SHEET AS OF APRIL 30, 2005 ASSETS CASH $ 472,300 TAXES RECEIVABLE DELINQUENT $373,790 LESS: ESTIMATED UNCOLLECTIBLE TAXES DELINQUENT 241, ,230 INTEREST AND PENALTIES RECEIVABLE 39,960 LESS: ESTIMATED UNCOLLECTIBLE INTEREST AND PENALTIES 15,280 24,680 MATERIAL AND SUPPLIES INVENTORY 19,100 TOTAL ASSETS $ 648,310 46

14 LIABILITIES AND FUND EQUITY LIABILITIES: VOUCHERS PAYABLE $149,360 FUND EQUITY: RESERVES: RESERVE FOR INVENTORY OF SUPPLIES $ 19,100 RESERVE FOR ENCUMBRANCES ,960 TOTAL RESERVES $ 90,060 FUND BALANCE 408,890 TOTAL FUND EQUITY 498,950 TOTAL LIABILITIES AND FUND EQUITY $ 648,310 d. ROMULUS COUNTY GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED APRIL 30, 2005 REVENUES TAXES $2,089,000 INTEREST AND PENALTIES ON TAXES 31,740 OTHER SOURCES 932,700 TOTAL REVENUES 3,053,440 EXPENDITURES SALARIES AND WAGES 819,490 CONTRIBUTIONS TO RETIREMENT FUNDS 62,690 INTEREST ON NOTE PAYABLE 6,000 OTHER 1,976,540 TOTAL EXPENDITURES 2,864,720 EXCESS OF REVENUES OVER EXPENDITURES 188,720 LESS CHANGE IN RESERVES DURING 2005: ENCUMBRANCES $70,960 INVENTORY OF SUPPLIES 3,000 73,960 INCREASE IN FUND BALANCE FOR THE YEAR 114,760 FUND BALANCE, MAY 1, ,130 FUND BALANCE, APRIL 30, 2005 $ 408,890 Computations: Taxes = [4-7A(3) 2,064, B(6) 25,000] Interest and Penalties on Taxes = [4-7A(5) 15, B(3) B(8) 16,240] Other Sources = [4-7A(8) 339, B(7) 593,700] Salaries and Wages = [4-7A(6) 481, B(4) 338,420) Contributions to Retirement Funds = [4-7B(7) 36, B(5) 25,890] 47

15 Interest on Notes Payable = [4-7A(2) $6,000] Other = [4-7A(10) 894, A(11) B(11) 1,092, B(13) 3,000] NOTE: The Governmental Activities ledger is not shown here. ROMULUS COUNTY General Fund General Ledger (Not Required) Cash Interest and Penalties Rec Bal. 93, A(6) 363,070 5/1/2004 Bal.26, A(5) 13, A(2) 294, A(11) 1,099, A(5) 15, B(3) 1, A(5) 1,387, A(12) 300, B(3) 1, B(7) 7, A(8) 339, B(4) 255, B(3) B(12) 4, B(3) 8, B(14) 1,202, B(8) 23, B(7) 1,571,300 Taxes Receivable Current Est. Uncollectible Interest & Penalties _ 4-7A(3) 2,150, A(5) 1,034, B(12) 4,180 5/1/2004 Bal. 11, B(6) 25, B(7) 927, B(3) 1, B(9) 214, B(8) 6,960 Est. Uncollectible Current Taxes Inventory of Supplies 4-7B(9) 86, A(3) 86,000 5/1/2004 Bal.16, B(13) 3,000 Taxes Receivable Delinquent Reserve for Inventory of Supplies 5/1/2004 Bal. 583, A(5) 340,000 5/1/2004 Bal. 16, B(3) 6, B(3) 6, B(13) 3, B(9) 214, B(7) 43, B(12) 39,940 Est. Uncollectible Delinquent Taxes Vouchers Payable 4-7B(12) 39,940 5/1/2004 Bal.189, A(11) 1,107,090 5/1/2004 Bal 148, B(3) 6, B(14) 1,202, A(9) 214, B(9) 86, A(10) 894, B(10) 108, B(11) 1,092,670 NOTE: An underline under a number in a T-account indicates a point at which the account has a zero balance. 48

16 Due to Federal Government Revenues 4-7A(9) 194,290 5/1/2004 Bal. 59, B(b) 3,053, A(3) 2,064, B(10) 94, A(6) 98, A(5) 15, A(7) 36, A(8) 339, B(4) 68, B(3) B(5) 25, B(6) 25, B(7) 593, B(8) 16,240 Due to State Government Expenditures A(9) 20, A(6) 20, A(2) 6, A(11) 8, A(10) 14, B(4) 14, A(6) 481, B(13) 3, A(7) 36, B(b) 2,864, A(10) 894, B(4) 338, B(5) 25, B(11) 1,092,670 Fund Balance Tax Anticipation Notes Payable 47B(1) 100,000 5/1/2004 Bal. 294, A(12) 300, A(2) 300, B(13) 3, A(1) 70, B(b) 147,760 Estimated Revenues Encumbrances A(1) 3,170, B(1) 100, A(4) 1,027, A(10) 890, B(b) 3,070, B(2) 1,032, B(11) 1,097, B(b) 70,960 Appropriations Reserve for Encumbrances B(b) 3,100, A(1) 3,100, A(10) 890, A(4) 1,027, B(11) 1,097, B(2) 1,032, A. TOWN OF BENTON ALEX BENTON PARK ENDOWMENT FUND GENERAL JOURNAL FOR YEAR ENDED JUNE 30, 2005 Debits Credits 1. DECEMBER 31, 2004: CASH 500,000 REVENUES CONTRIBUTIONS FOR FOR ENDOWMENT 500,000 49

17 2. DECEMBER 31, 2004: INVESTMENT IN BONDS 406,300 ACCRUED INTEREST RECEIVABLE 6,000 CERTIFICATE OF DEPOSIT 70,000 CASH 482, JANUARY 2, 2005: NO ENTRY REQUIRED IN THE ENDOWMENT FUND. 4. MARCH 31, 2005: A. CASH 700 REVENUES INVESTMENT EARNINGS 700 B. INTERFUND TRANSFERS OUT 700 CASH APRIL 1, 2005: A. CASH 12,000 ACCRUED INTEREST RECEIVABLE 6,000 REVENUES INVESTMENT EARNINGS 6,000 B. INTERFUND TRANSFERS OUT 6,000 CASH 6, JUNE 30, 2005: A. CASH 700 REVENUES INVESTMENT EARNINGS 700 Ch. 4, Solutions, 4-8 (Cont d) B. INTERFUND TRANSFERS OUT 700 CASH JUNE 30, 2005: NO ENTRY REQUIRED IN THE ENDOWMENT FUND. 8. JUNE 30, 2005: Note: Entries A and B below are adjusting entries made to all bonds before 25% of them are sold. A. ACCRUED INTEREST RECEIVABLE (ALL BONDS) 6,000 REVENUES INVESTMENT EARNINGS 6,000 ($400,000 x.06 x 3/12) B. INVESTMENT IN BONDS 1,700 REVENUES CHANGE IN FAIR VALUE OF INVESTMENTS 1,700 [($400,000 X 1.02) - $406,300] = $1,700 50

18 CASH 103,500 INVESTMENT IN BONDS ($400,000 x 1.02 x 25%) 102,000 ACCRUED INTEREST RECEIVABLE (25%) 1,500 (TO RECORD SALE OF BONDS) C. STOCKS 104,000 CASH 104,000 (TO RECORD PURCHASE OF STOCKS) D. INTERFUND TRANSFERS OUT 6,000 CASH (OR DUE TO MAINTENANCE FUND) 6,000 (NOTE: CHANGE IN FAIR VALUE NOT INCLUDED IN EARNINGS FOR TRANSFER PURPOSES) Closing entry: A. REVENUES CONTRIBUTIONS FOR ENDOWMENT 500,000 REVENUES INVESTMENT EARNINGS 13,400 REVENUES CHANGE IN FAIR VALUE OF INVESTMENTS 1,700 OPERATING TRANSFERS OUT 13,400 FUND BALANCE RESERVED FOR ENDOWMENT 501,700 (TO CLOSE TEMPORARY ACCOUNTS) B. TOWN OF BENTON ALEX BENTON PARK MAINTENANCE FUND GENERAL JOURNAL FOR YEAR ENDED JUNE 30, DECEMBER 31, 2004: NO ENTRY REQUIRED IN EXPENDABLE TRUST FUND. 2. DECEMBER 31, 2004: NO ENTRY REQUIRED IN EXPENDABLE TRUST FUND. 3. JANUARY 2, 2005: ESTIMATED OTHER FINANCING SOURCES INTERFUND TRANSFERS IN 13,400 APPROPRIATIONS 13,000 FUND BALANCE MARCH 31, 2005: CASH 700 INTERFUND TRANSFERS IN

19 5. APRIL 1, 2005: CASH 6,000 INTERFUND TRANSFERS IN 6, JUNE 30, 2005: CASH 700 INTERFUND TRANSFERS IN JUNE 30, 2005: EXPENDITURES--MATERIALS AND CONTRACTUAL SERVICES 2,700 EXPENDITURES--WAGES AND SALARIES 10,150 CASH 12,420 ACCOUNTS PAYABLE JUNE 30, 2005: A. CASH (OR DUE FROM ENDOWMENT FUND) 6,000 INTERFUND TRANSFERS IN 6,000 B. OPERATING TRANSFERS IN 13,400 APPROPRIATIONS 13,000 EXPENDITURES--MATERIALS AND CONTRACTUAL SERVICES 2,700 EXPENDITURES--WAGES AND SALARIES 10,150 ESTIMATED OTHER FINANCING SOURCES 13,400 FUND BALANCE 150 C. (1). TOWN OF BENTON ALEX BENTON PARK ENDOWMENT FUND BALANCE SHEET AS OF JUNE 30, 2005 ASSETS CURRENT ASSETS: CASH $ 17,200 ACCRUED INTEREST RECEIVABLE 4,500 TOTAL CURRENT ASSETS 21,700 INVESTMENTS: BONDS, AT PAR 306,000 STOCKS 104,000 CERTIFICATE OF DEPOSIT 70,000 TOTAL INVESTMENTS 480,000 TOTAL ASSETS $501,700 52

20 LIABILITIES AND FUND EQUITY LIABILITIES -0- FUND EQUITY: FUND BALANCE RESERVED FOR ENDOWMENT 501,700 TOTAL LIABILITIES AND FUND EQUITY $501,700 (2). TOWN OF BENTON ALEX BENTON PARK ENDOWMENT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR YEAR ENDED JUNE 30, 2005 REVENUES RECEIVED FOR CONTRIBUTION TO ENDOWMENT $500,000 REVENUES EARNED FOR TRANSFER TO EXPENDABLE TRUST FUND: INTEREST ON BONDS 12,000 INTEREST ON CERTIFICATE OF DEPOSIT 1,400 TOTAL REVENUE EARNED FOR TRANSFER 13,400 REVENUES FROM CHANGE IN FAIR VALUE OF INVESTMENTS 1,700 TOTAL REVENUES 515,100 OTHER FINANCING USES: OPERATING TRANSFERS TO ALEX BENTON PARK MAINTENANCE FUND 13,400 EXCESS OF REVENUE OVER OTHER FINANCING USES 501,700 FUND BALANCE, JULY 1, FUND BALANCE, JUNE 30, 2005 $501,700 C. (1). TOWN OF BENTON ALEX BENTON PARK MAINTENANCE FUND BALANCE SHEET AS OF JUNE 30, 2005 ASSETS CASH $ 980 TOTAL ASSETS $

21 LIABILITIES AND FUND EQUITY LIABILITIES: ACCOUNTS PAYABLE $ 430 TOTAL LIABILITIES 430 FUND EQUITY: FUND BALANCE 550 TOTAL LIABILITIES AND FUND EQUITY $ 980 (2). TOWN OF BENTON ALEX BENTON PARK MAINTENANCE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR YEAR ENDED JUNE 30, 2005 REVENUES $ -0- EXPENDITURES: MATERIALS AND CONTRACTUAL SERVICES $ 2,700 WAGES AND SALARIES 10,150 12,850 EXCESS OF EXPENSES OVER REVENUES (12,850) OTHER FINANCING SOURCES: OPERATING TRANSFERS IN 13,400 INCREASE IN FUND BALANCE 550 FUND BALANCE, JULY 1, FUND BALANCE, JUNE 30, 2005 $