ACCT567 Case Study I (Week 2)
The General Fund of Middleville has presented you with the following trial balance as of June
30, 2011.
Cash
Taxes Receivable- Delinquent
Estimated Uncollectible Taxes- Delinquent
Interest and Penalties Receivable
Vouchers Payable
Budgetary Fund Balance-Reserve for Encumbrances
Fund Balance

Debits
$ 40,000
142,000

Credits
9,100

32,000
24,000
10,200
_________
170,700
$ 214,000
$214,000

The information that is being presented to you pertains to the transactions for the city of
Middleville for the fiscal year ended June 30, 2012.
1. The following budget was adopted by the city council:
Estimated Revenues:
Property Taxes
$ 650,000
Fines and Penalties
44,000
Licenses and Permits
150,000
Federal Grant
85,000
929,000
Appropriations and Other Financing Uses
Public Safety
402,000
General Government
263,000
Public Works
102,000
Parks and Recreation
92,000
Transfers Out
34,000
893,000
2. Encumbrances outstanding at the end of the year were re-opened.
3. Property taxes of $ 660,000 were levied. It is estimated that 2.5% of the property taxes
levied are expected to be uncollectible/
4. Purchase orders issued for the 2012 fiscal year were as follows:
Public Safety, $ 395,000; General Government, $ 259,000; Public Works, $ 100,000;
Parks and Recreation, $ 98,000.
5. Cash collected for the Federal Grant from the Federal Government, $ 94,000.
6. Cash collected and transferred in as follows:
Fines and Penalties
43,000
Licenses and Permits
164,000
7. Cash collected on property taxes were as follows: Current taxes, $559,000, Delinquent
Taxes, $ 41,000 and $ 22,000 of interest and penalties were collected.

8. Purchase orders issued in 2012 in the following amounts were filled in at the following
amounts:
Estimated
Actual
Public Safety
$ 395,000
$ 393,600
General Government
$ 259,000
$ 258,200
Public Works
$ 100,000
$ 99,400
Parks and Recreation
$ 98,000
$ 97,500
—————————-$ 852,000
$ 848,700
9. Vouchers paid amounted to $ 840,000 and the transfer out to the Debt Service Fund,
$34,000.
10. Please reclassify the Taxes Receivable –Current and Estimated Uncollectible TaxesChange from Current to Delinquent.
Instructions:
a. Prepare journal entries for the fiscal year ending 2012.
b. Prepare closing entries.
c. Prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund
Balance for the year ended June 30, 2012.
d. Prepare a General Fund Balance Sheet as of June 30, 2012.
Grading Rubric for Case Study 1:
Category
Documentation &
Formatting

Points
10

%
20%

Organization and
Cohesiveness

15

30%

Content

25

50%

Total

50

100%

Description
Project will be done in
Excel and will contain
formulas to receive
maximum credit.
Calculations for all
parts should be
organized and
correctly labeled.
A quality case study
will have all required
work completed and
will be correct.
A quality project will
meet or exceed all of
the above
requirements.