ended December 31, 2017:
Estimated revenues | |
Property tax | 400,000 |
Sales tax | 350,000 |
Fines and penalties | 250,000 |
Rental charges | 200,000 |
Appropriations | |
services | 120,000 |
Travel & Transportations | 110,000 |
Equipments | 380,000 |
Supplies | 60,000 |
Salaries | 430,000 |
If you know that property ownership in the village belongs to four property owners as below:
Edward | 140,000 |
Arthur | 120,000 |
Harrison | 80,000 |
Teddy | 60,000 |
1. During the year taxes were collected in property $60,000 from Edward, $120,000 from Arthur, $60,000 from Teddy, $50,000 from Harrison.
2. Due to a change in economic conditions the village budget committee expect an increase in sales taxes in amount of $50,000.
3. A contract was signed with a CPA to provide the annual audit in the amount of $15,200.
4. Contracted services were performed to the village with invoices amounting to $100,000.
5. The village contracted to have alarm systems (Equipments) installed in the administration building at a cost of $46,000. The systems were installed and the amount was paid.
6. the village ordered different equipments during the year in amount of $320,000.
7. The equipment arrived with an invoice in amount of $325,000.
8. The village paid out salaries in amount of $430,000 to the employees
9. The Village accounting department received from the board members and managers invoices for travel and transportations in amount of $105,000.
10. The village purchased supplies in amount of $60,000 and then paid out to the suppliers two thirds of the amount in cash.
11. The village collected taxes in amount of $395,000 during the year, $270,000 from fines and penalties, $200,000 from rental of its warehouses.
Requirements: record the journal entries related to the budget at the beginning of the year, set up property tax receivables, journalize the transactions above. Then closing entries.
