PROBLEM 6:
Following is a pre-closing trial balance of a village's GeneralFund at December 31, 2019. The amount shown as Fund balance(unassigned) has not changed since the year started. The amountshown as appropriations includes the amounts appropriated fortransfers. Property tax invoices are mailed out on January 10 andare due to be paid on February 10. Property owners that have notpaid their taxes are classified as delinquent on March 10.
| Debits | Credits |
| Cash | $4,000 | |
| Property taxes receivable, delinquent | 22,000 | |
| Allowance for uncollectible property taxes, delinquent | | $5,000 |
| Salaries payable | | 6,000 |
| Due to Water Enterprise Fund | | 3,000 |
| Accounts payable | | 16,000 |
| Fund balance (unassigned) | | 3,000 |
| Property tax revenues | | 250,000 |
| Sales tax revenues | | 40,000 |
| Expenditures - salaries | 220,000 | |
| Expenditures - other than personal services | 23,000 | |
| Expenditures - utilities | 14,000 | |
| Transfer to Debt Service Fund | 30,000 | |
| Transfer to Water Enterprise Fund | 10,000 | |
| Estimated revenues (total) | 297,000 | |
| Appropriations (total) | | |
| Budgetary fund balance | 3,000 | |
| Totals | $623,000 | $623,000 |
Based on the information contained in the foregoing trialbalance, answer the following questions.
- When the budget was adopted, what budgetary results did thevillage anticipate? (Assume the budgetary amounts shown in thetrial balance represent the budget as originally adopted by thevillage.)
- What were the results of operations for the year? Did the fundbalance increase or decrease as a result of the year's activities,and by how much? How much will the amount of the unassigned fundbalance be after the books are closed?
- Based on your analysis of the data, what appears to be themajor cause (or causes) of the difference between the anticipatedand the actual operating results?
- Discuss at least two possible reasons for the transfers to theDebt Service Fund and the Water Enterprise Fund.
- Discuss at least two possible reasons for the amount shown asDue to Water Enterprise Fund.
PLEASE ANSWER THE ENTIRE PROBLEM CORRECTLY FOR A THUMBS UP
