the january 1 2012 trial balance the calendar year 2012 budget and the 2012 transact 615844

Complete Accounting Cycle—General Fund

The January 1, 2012, trial balance, the calendar-year 2012 budget, and the 2012 transactions of the City of Roseburg are presented here:

City of Roseburg Trial Balance January 1, 2012

City of Roseburg Budget for General Fund Calendar Year 2012

Transactions of the City of Roseburg that affected the General Fund during the year are summarized below:

1. The City Council approved the budget and it was recorded.
2. Orders for goods and services were issued for a total of $1,202,000 during the year.
3. Goods and services were delivered against all orders placed with a total invoice amount of $1,165,600. Of this, $80,000 was for orders placed in the prior year.
4. The City accepted a low bid of $78,000 for a new street sweeper for the sanitation department. A purchase order was issued.
5. The City received $92,500 from the sale of an old street sweeper and one obsolete fire engine at public auction. The street sweeper cost $60,000 7 years ago, at which time it was estimated to have a useful life of 10 years. The fire engine cost $200,000 8 years ago, at which time it was estimated to have a useful life of 12 years.
6. Property tax statements were issued. The tax levy was 8% of the assessed valuation of $18,500,000. An estimated 2% of the tax levy will be uncollectible.
7. Payment was received from the federal government. This was a grant to be used for upgrading sanitation department equipment.
8. The amount of $55,000 was transferred to the Debt Service Fund for the payment of interest on the outstanding bond issue.
9. The city billed residents for trash service. Total billings amounted to $155,675.
10. Property taxes totaling $1,438,455 were collected, of which $34,200 was past-due collections from the prior year; $18,250 of past-due taxes was charged off as uncollectible.
11. Wages paid to employees during the year amounted to $998,765.
12. City retail establishments remitted a total of $333,650 in sales tax collections for the year.
13. Other cash receipts during the year were:

1. Cash purchases of printed forms and other office supplies for the year amounted to $57,680.
2. The street sweeper was delivered and an invoice for $78,000 plus freight charges of $1,280 was received. The invoice was approved for payment and a check issued.
3. Checks were issued in payment of outstanding vouchers totaling $1,207,100.
4. End-of-year activities: (adjustments)

Supplies Inventory 12/31/12: $38,250

Accrued interest on CDs at 5%

The city uses the purchases method to account for supplies expenditures.

Required:

1. Enter the opening trial balance data in t-accounts.
2. Prepare journal entries for the year”s transactions. Do not include entries for year-end adjustments. Post entries to t-accounts.
3. Prepare a preclosing trial balance.
4. Prepare journal entries to adjust the Supplies Inventory and record the interest on the CDs.
5. Prepare journal entries to close the revenue, expenditures, and encumbrance accounts.
6. Prepare a comparative balance sheet for 2011–2012.
7. Prepare a statement of revenues, expenditures, and changes in fund balance for 2012.