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
32,000
_________
$ 214,000 Credits
9,100
24,000
10,200
170,700
$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 Taxes- Change 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.
