Transactions and Budgetary Comparison Schedule. The following transactions occurred during the 2011 fiscal year for the City of Fayette. For budgetary purposes, the city reports encumbrances in the Expenditures section of its budgetary comparison schedule for the General Fund but exclude expenditures
chargeable to a prior year’s appropriation.
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1. The budget prepared for the fiscal year 2011 was as follows:
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Estimated Revenues:
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Taxes
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$1,943,000
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Licenses and permits
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372,000
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Intergovernmental revenue
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397,000
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Miscellaneous revenues
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62,000
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Total estimated revenues
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2,774,000
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Appropriations:
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General government
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471,000
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Public safety
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886,000
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Public works
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650,000
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Health and welfare
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600,000
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Miscellaneous appropriations
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86,000
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Total appropriations
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2,693,000
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Budgeted increase in fund balance
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$ 81,000
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2. Encumbrances issued against the appropriations during the year were as follows:
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General government
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$ 58,000
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Public safety
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250,000
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Public works
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392,000
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Health and welfare
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160,000
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Miscellaneous appropriations
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71,000
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Total
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$931,000
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3. The current year’s tax levy of $2,005,000 was recorded; un collectibles were estimated as $65,000.
4. Tax collections from prior years’ levies totaled $132,000; collections of the current year’s levy totaled $1,459,000.
5. Personnel costs during the year were charged to the following appropriations in the amounts indicated. Encumbrances were not recorded for personnel costs. Since no liabilities currently exist for withholdings, you may ignore any FICA or federal or state income tax withholdings. (Note: Expenditures charged to Miscellaneous Appropriations should be treated as General Government expenses in the governmental activities general journal at the government wide level.)
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General government
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$ 411,000
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Public safety
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635,000
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Public works
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254,000
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Health and welfare
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439,000
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Miscellaneous appropriations
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11,100
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Credit to Vouchers Payable
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$1,750,100
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6. Invoices for all items ordered during the prior year were received and approved for payment in the amount of $14,470. Encumbrances had been recorded in the prior year for these items in the amount of $14,000. The amount chargeable to each year’s appropriations should be charged to the Public Safety appropriation.
7. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in Transaction (2) of this problem. The following appropriations were affected.
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Actual Liability
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Estimated Liability
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General government
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$ 52,700
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$ 52,200
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Public safety
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236,200
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240,900
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Public works
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360,000
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357,000
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Health and safety
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130,600
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130,100
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Miscellaneous appropriations
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71,000
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71,000
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$850,500
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$851,200
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8. Revenue other than taxes collected during the year consisted of licenses and permits, $373,000; intergovernmental revenue, $400,000; and $66,000 of miscellaneous revenues. For purposes of accounting for these revenues at the government wide level, the intergovernmental revenues were operating grants and contributions for the Public Safety function. Miscellaneous revenues are not identifiable with any function and therefore are recorded as General Revenues at the government wide level.
9. Payments on Vouchers Payable totaled $2,505,000. Additional information follows: The General Fund Fund Balance account had a credit balance of $82,900 as of December 31, 2010; no entries have been made in the Fund Balance account during 2011.
Required
a. Record the preceding transactions in general journal form for fiscal year 2011 in both the General Fund and governmental activities general journals.
b. Prepare a budgetary comparison schedule for the General Fund of the City of Fayette for the fiscal year ending December 31, 2011, as shown in Illustration
