Transactions and Budgetary Comparison Schedule. The following transactions occurred during the 2014 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 excludes expenditures chargeable to a prior year's appropriation.
1. The budget prepared for the fiscal year 2014 was as follows:
Estimated Revenues:
Taxes $1,943,000
Licenses and permits 372,000
Intergovernmental revenue 397,000
Miscellaneous revenues 62,000
Total estimated revenues 2,774,000
Appropriations:
General government 471,000
Public safety 886,000
Public works 650,000
Health and welfare 600,000
Miscellaneous 86,000
Total appropriations 2,693,000
Budgeted increase in fund balance $ 81,000
2. Encumbrances issued against the appropriations during the year were as follows:
General government $ 58,000
Public safety 250,000
Public works 392,000
Health and welfare 160,000
Miscellaneous 71,000
Total $931,000
3. The current year's tax levy of $2,005,000 was recorded; uncollectibles 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 should be treated as General Government expenses in the governmental activities general journal at the government-wide level.)
General government $ 411,000
Public safety 635,000
Public works 254,000
Health and welfare 439,000
Miscellaneous 11,100
Credit to Vouchers Payable $1,750,100
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.
Actual Estimated
Liability Liability
General government $ 52,700 $ 52,200
Public safety 236,200 240,900
Public works 360,000 357,000
Health and safety 130,600 130,100
Miscellaneous 71,000 71,000
$850,500 $851,200
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-Unassigned account had a credit balance of $82,900 as of December 31, 2013; no entries have been made in the Fund Balance-Unassigned account during 2014.
Required
a. Record the preceding transactions in general journal form for fiscal year 2014 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, 2014, as shown in Illustration 4-5. Do not prepare a government-wide statement of activities since other governmental funds would affect that statement.