ACCT567 Case Study I (Week 2) The General Fund of Middleville has presented you with the following trial balance as of June 30, 2011. Debits Credits Cash $ 40,000 Taxes Receivable- Delinquent 142,000 Estimated Uncollectible Taxes- Delinquent 9,100 Interest and Penalties Receivable 32,000 Vouchers Payable 24,000 Budgetary Fund Balance-Reserve for Encumbrances 10,200 Fund Balance _________ 170,700 $ 214,000 $214,000 The information that is being presented to you pertains to the transactions for the city of Middleville for the fiscal year ended June 30, 2012. 1. The following budget was adopted by the city council: Estimated Revenues: Property Taxes $ 650,000 Fines and Penalties 44,000 Licenses and Permits 150,000 Federal Grant 85,000 929,000 Appropriations and Other Financing Uses Public Safety 402,000 General Government 263,000 Public Works 102,000 Parks and Recreation 92,000 Transfers Out 34,000 893,000 2. Encumbrances outstanding at the end of the year were re-opened. 3. Property taxes of $ 660,000 were levied. It is estimated that 2.5% of the property taxes levied are expected to be uncollectible/ 4. Purchase orders issued for the 2012 fiscal year were as follows: Public Safety, $ 395,000; General Government, $ 259,000; Public Works, $ 100,000; Parks and Recreation, $ 98,000. 5. Cash collected for the Federal Grant from the Federal Government, $ 94,000. 6. Cash collected and transferred in as follows: Fines and Penalties 43,000 Licenses and Permits 164,000 7. Cash collected on property taxes were as follows: Current taxes, $559,000, Delinquent Taxes, $ 41,000 and $ 22,000 of interest and penalties were collected. 8. Purchase orders issued in 2012 in the following amounts were filled in at the following amounts: Estimated Actual Public Safety $ 395,000 $ 393,600 General Government $ 259,000 $ 258,200 Public Works $ 100,000 $ 99,400 Parks and Recreation $ 98,000 $ 97,500 ————— ————— $ 852,000 $ 848,700 9. Vouchers paid amounted to $ 840,000 and the transfer out to the Debt Service Fund, $34,000. 10. Please reclassify the Taxes Receivable â€“Current and Estimated Uncollectible Taxes- Change from Current to Delinquent. Instructions: a. Prepare journal entries for the fiscal year ending 2012. b. Prepare closing entries. c. Prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ended June 30, 2012. d. Prepare a General Fund Balance Sheet as of June 30, 2012. Grading Rubric for Case Study 1: Category Points % Description Documentation & Formatting 10 20% Project will be done in Excel and will contain formulas to receive maximum credit. Organization and Cohesiveness 15 30% Calculations for all parts should be organized and correctly labeled. Content 25 50% A quality case study will have all required work completed and will be correct. Total 50 100% A quality project will meet or exceed all of the above requirements.