The following information relates to Dell City, whose first fiscal year ended December 31, 2006. Assume Dell has only the long-term debt specified in the information and only the funds necessitated by the information.
1. General fund:
• The following selected information is taken from Dell's 2006 general fund financial records:
Budget Actual
Property taxes $5,000,000 $4,700,000
Other revenues 1,000,000 1,050,000
Total revenues $6,000,000 $5,750,000
Total expenditures $5,600,000 $5,700,000
Property taxes receivable -
delinquent $420,000
Less: Allowance for estimated
uncollectible taxes delinquent 50,000
$370,000
• There were no amendments to the budget as originally adopted.
• No property taxes receivable have been written off, and the allowance for uncollectibles balance is unchanged from the initial entry at the time of the original tax levy.
• There were no encumbrances outstanding at December 31, 2006.
2. Capital project fund:
Finances for Dell's new civic center were provided by a combination of general fund transfers, a state grant, and an issue of general obligation bonds. Any bond premium on issuance is to be used for the repayment of the bonds at their $1,200,000 par value. At December 31, 2006, the capital project fund for the civic center had the following closing entries:
Revenues $ 800,000
Other financing sources -- bond proceeds $1,230,000
Other financing sources - - transfers in $500,000
Expenditures $1,080,000
Other financing uses- transfers out $30,000
Unreserved fund balance $1,420,000
• Also, at December 31, 2006, capital project fund entries reflected Dell’s intention to honor the $1,300,000 purchase orders and commitments outstanding for the center.
• During 2006, total capital project fund encumbrances exceeded the corresponding expenditures by $42,000.
• All expenditures were previously encumbered.
• During 2007, the capital project fund received no reve¬nues and no other financing sources. The civic center building was completed in early 2007 and the capital project fund was closed by a transfer of $27,000 to the general fund.
Required:
For Items 1 through 11, indicate if the answer to each item is yes (Y) or no (N) in the blank space provided. Show all work/explain response.
Items 1 through 8 related to Dell's general fund.
1. ___ Did recording budgetary accounts at the beginning of 2006 increase the fund balance by $50,000?
2.___ Should the budgetary accounts for 2006 include an entry for the expected transfer of funds from the general fund to the capital projects fund?
3.___ Should a $700,000 payment from the general fund, which was used to help to establish the water utility fund, be reported as an "other financing use - transfers out"?
4. ___ Did the general fund receive the $30,000 bond premium from the capital projects fund?
5.___ Should a payment from the general fund for water received for normal civic center operations be re¬ported as an "other financing use - trans¬fers out"?
6.___ Does the net property taxes receivable of $370,000 include amounts expected to be collected after March 15, 2007?
7.___ Would closing budgetary accounts cause the fund balance to increase by $400,000?
8.___ Would the interaction between budgetary and actual amounts cause the fund balance to decrease by $350,000?
Items 9 through 11 relate to Dell's capital assets and funds other than the general fund.
9.____ Should an amount be reported for capital assets in 2004 reflecting activity in the capital projects fund"?
10.____ Should Dell record depreciation in 2006 on the civic center in the capital projects fund?
11.____Should the capital project fund be included in Dell’s governmental fund statement of revenues, expenditures, and changes in fund balances?
For Items 12 through 19, determine the amount. Show your work. Select your answer from the list of amounts below. An amount may be selected once, more than once, or not at all. Show all work.
Amounts
(A) $0 (J) $1,500,000
(B) $100,000 (K) $2,422,000
(C) $120,000 (L) $2,473,000
(D) $500,000 (M) $2,480,000
(E) $750,000 (N) $4,750,000
(F) $800,000 (O) $5,000,000
(G) $1,000,000 (P) $5,600,000
(H) $1,080,000 (Q) $6,000,000
(I) $1,200,000 (R) $11,750,000
Items 12 and 13 relate to Dell's general fund.
12____ What was the amount recorded in the opening entry for appropriations?
13.____What was the total amount debited to property taxes receivable?
Items 14 through 19 relate to amounts and funds other than the general fund.
14.____ What amount should be reported in the government –wide statement of net assets for bonds payable at December 31, 2006?
15.____ What amount should be reported in the government-wide statement of net assets for general capital assets at December 31, 2006?
16.____What was the completed cost of the civic center?
17.____ How much was the state capital grant for the civic center?
18.____In the capital project fund, what was the amount of the total encumbrances recorded during 2006?
19.___ In the capital project fund, what was the unreserved fund balance reported at December 31, 2006?