FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The City of Greystone maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:
- The City levied property taxes for the current fiscal year in the amount of $8,000,000. At year-end, $720,000 of the taxes had not been collected. It was estimated that $330,000 of that amount would be collected during the 60 days after the end of the fiscal year and that $360,000 would be collected after that time and the balance would be uncollectible. The City had recognized the maximum of property taxes allowable under modified accrual accounting.
- $255,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year.
- In addition to the expenditures reported under modified accrual accounting, the city computed that an additional $104,000 should be accrued for compensated absences.
- In the Statement of Revenues, Expenditures, and Changes in Fund Balances, General Fund transfers out included $600,000 to a debt service fund and $270,000 to a special revenue fund. General Fund transfers in included $750,000 from an enterprise fund.
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