PROBLEM 176 Balance Sheet Stalement of Revenues Expenditures

PROBLEM 17-6 Balance Sheet, Stalement of Revenues, Expenditures, and Changes in Fund Balance LO8 Hunnington Township\'s adjusied trial balance for the General Fund at the close of its fiscal year ended June 30, 2016, is presenied here: General Fund Trial Balance June 30, 2016 $11,000 Cash Property Tax Receivable curret (Note 1) Eistimated Uncollectible Taxes current Property Tax Receivable deinquent Estimated Uncolloctible Taxes delinquent Accounts Receivable (Note 1) Allowance for Uncollectible Accounts Due from Inlernal Service Fund (Note 5) Expenditures (Nole 2) $1,500 25,000 4,000 0,000 755,000 37,000 Revenue (Note 3) Due to Interprise Fund (Nole ?) Vouchers Payable Surplus Roceipts(Nole 4 10,000 20,000 7,000 720,000 81,000 80,000 $1,000,000 ud Balance Assigned (Nole 6) ud Balance Unasssigaed $1,000,000 Nole 1: The current tax roll and accounts receivable, recorded on the axcrual basis as sources of revenue amounied to $500,000 and $200,000, respectively. Nole 2: Includes $42,500 paid during the fiscal year in settlement of all purchase onders outstanding at the beginning o the fiscal year Copyright 02015 John Wiley & Sons, Inc. Nole 3 Represents the difference between the budgeled (estimated) revenue of S700,000 and the actual revenue realized during the fiscal year. Nole 4 Represents the proceeds from the sale of oqripment damaged by fire. The equipment originally cost $40,000 and had been held for 80% of its useful life prior to the fire. Nole 5:The interfund payable and receivable resulled from cash advances (loans) do and from the respec tive funds Nole 6Includes $44,000 of encumbrances from prior year A. Prepare a statement of revenues, expenditures, and changes in fund balance B. Prepare a balance sheet for the General Fund at June 30, 2016 (AICPA adapted)

Solution

Solution

(A)

THE HUNNINGTON TOWNSHIP

Statement of Revenues, Expenditures and

Changes in Fund Balance

For the Year Ended June 30, 2016

The Revenue

The Expenditures:

The Current Year’s Appropriation

The Prior Year’s Appropriation

Total

Excess of Revenues over Expenditures

Sale of Equipment

Increase (Decrease) in Fund Balance

Fund Balance July 1, 2015

Fund Balance June 30, 2016

^a $700,000 + $60,000 = $767,000

^b $755,000 - $42,500 = $712,500

^c Unreserved fund balance per trial balance

Add appropriations

Deduct estimated revenue (note 3)

The Unreserved fund balance - July 1, 2015

Reserve for encumbrances - July 1, 2015

Fund Balance - July 1, 2015

The Unreserved fund balance per trial balance

Add revenue in excess of estimated revenue ($767,000 - $700,000)

The Deduct expenditures and encumbrances in excess of appropriations

[($755,000 + $37,000) - $764,000]

The Unreserved fund balance - June 30, 2016

The Reserve for encumbrances

Fund Balance - June 30, 2016

$760,000^a

712,500^b

    42,500

755,000

5,000

    7,000

12,000

144,000^c

$156,000^d

$80,000

720,000

(700,000)

100,000

    44,000

$144,000

$80,000

67,000

    (28,000)

119,000

     37,000

$156,000

(B)

THE HUNNINGTON TOWNSHIP

The General Fund

Balance Sheet

June 30, 2016

Assets

Cash

The Property Tax Receivable

Less Estimated Uncollectible Taxes

The Accounts Receivable

Less Allowance for Uncollectible Accounts

The Due from Internal Service Fund

Total

Liabilities and Fund Balance

The Vouchers Payable

The Due to Enterprise Fund

The Fund Balance:

The Unreserved

The Reserve for Encumbrances

Total

$107,000

     18,000

40,000

       4,000

$119,000

     37,000

$11,000

89,000

36,000

     50,000

$186,000

$20,000

10,000

   156,000

$186,000

(A)	THE HUNNINGTON TOWNSHIP Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended June 30, 2016
	The Revenue The Expenditures: The Current Year’s Appropriation The Prior Year’s Appropriation Total Excess of Revenues over Expenditures Sale of Equipment Increase (Decrease) in Fund Balance Fund Balance July 1, 2015 Fund Balance June 30, 2016 a $700,000 + $60,000 = $767,000 b $755,000 - $42,500 = $712,500 c Unreserved fund balance per trial balance Add appropriations Deduct estimated revenue (note 3) The Unreserved fund balance - July 1, 2015 Reserve for encumbrances - July 1, 2015 Fund Balance - July 1, 2015 The Unreserved fund balance per trial balance Add revenue in excess of estimated revenue ($767,000 - $700,000) The Deduct expenditures and encumbrances in excess of appropriations [($755,000 + $37,000) - $764,000] The Unreserved fund balance - June 30, 2016 The Reserve for encumbrances Fund Balance - June 30, 2016	$760,000a 712,500b     42,500 755,000 5,000     7,000 12,000 144,000c $156,000d $80,000 720,000 (700,000) 100,000     44,000 $144,000 $80,000 67,000     (28,000) 119,000      37,000 $156,000