Help solve these and explain each step?
1. Prepare a budgetary comparison schedule for the City for the year ended December 31, 2016 assuming the fund balance of the General Fund (budgetary basis) was $627,000 at January 1, 2016.
No "original budget" column is required. Include a "variance" column.
Prepare a budgetary comparison schedule for the City for the year ended December 31, 2016 assuming the fund balance of the General Fund (budgetary basis) was $627,000 at January 1, 2016.
No "original budget" column is required. Include a "variance" column.
2. The City of Mortonville had the following pre-closing account balances in its General Fund as of April 30, 2016.
Debits and credits are not separated; but each account had its "normal" balance.
Among the expenditures recorded this year is an amount expended on supplies ordered at the end of the previous year. Assume that encumbrances do not lapse and that the City failed to make the journal entry(s) necessary to re-establish the encumbrance in the current year.
Required:
(a) Prepare all entries necessary to close the General Fund of the City of Mortonville.
(b) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund for the City of Denville for the Year Ended April 30, 2016. End with the ending fund balance. This is the GAAP operating statement.
3. Mid-City's General Fund has the following net resources at December 31, 2016:
· Total assets of $846,000 and liabilities of $137,500.
· $400,000 rainy day fund approved by the township governing board
· $3,600 of supplies inventory
· $15,000 state grant for snow removal
· $120,000 contractual obligations for capital projects
· $66,000 of outstanding encumbrances representing purchase orders which will be paid from the General Fund
Required:
Prepare the fund balance section of the Balance Sheet
4. The City of Little Creek had the following transactions related to the construction of a new city hall building.
(a) 1/2/2016: 20 year 6% General Obligation Serial Bonds with a face value of $3,000,000 are issued at 101. Interest payments are made on Jan. 1 and July 1 of each year. The premium was transferred into the Debt Service Fund. The General Fund will fully fund each payment as they become due.
(b) 3/1/2016: Land is purchased for a new park at a cost of $175,000.
(c) 3/1/2016: A contract is signed for landscaping and construction of various structures in the park in the amount of $2,600,000.
(d) 6/15/2016: $165,000 is transferred from the General Fund for the 7/1 payment due on the city hall fund serial bonds.
(e) 7/1/2016: Interest ($90,000) and principal ($75,000) are paid on the city hall building fund serial bonds.
(f) 12/1/2016: Receive an invoice for progress completed to date on the city hall building construction project in the amount of $1,716,000.
(g) 12/27/2016: $87,750 is transferred from the General Fund for the 1/1/10 interest payment due on the city hall building fund serial bonds. Interest is accrued as of 12/31/2016, following the exception permitted by GASB.
Required:
Prepare a Statement of Revenues, Expenditures and Changes in Fund Balance for the Capital Projects and Debt Service Funds. Assume this is the first year for each fund (beginning fund balances are zero) and the City has no other long-term debt than that described above. Use separate columns for the two funds.