Individual Portion
Your team has been hired as the accountants for the Village of AIU. Your team is being asked to do the following:
• Please see the adopted budget and trial Balance given below to use.
• Note that the only encumbrances outstanding at year-end were $15,000 for unperformed contracts in community development.
• The beginning fund balance was $75,000.
• Prepare the closing entries for the general ledger accounts and the subsidiary ledgers of the Village of AIU general fund.
• Prepare the statement of revenues, expenditures, and changes in fund balance—budget and actual—for the Village of AIU General Fund for the 20X9 fiscal year.
• Work as a team to define an approach for producing the deliverables for this assignment.
• Assign individual work to each team member.
Objective:
• Demonstrate an understanding of governmental and not-for-profit accounting and financial statements;
• Analyze transactions unique to governmental and not-for-profit entities to determine potential outcomes;
Estimated Revenues:
Taxes $ 125,000
Interest & penalities 2 0,000
License, permits & fees 35,000
Intergovernmental grants 15,000
Investment revenue 75,000
Miscellaneous revenue 5,000
Total estimated revenues $ 275,000
Appropriations:
General government 80,000
Public safety 23,000
Street and sanitation 50,000
Health and welfare 3 5,000
Community development 12,000
Parks and recreation 25,000
Total appropriations 225,000
Budgeted excess of revenues
over appropriations $ 50,000
Debit Credit
Revenues Subsidiary Ledger:
Taxes 5,000
Interest & penalities 1,500
License, permits & fees 4,250
Intergovernmental grants 13,750
Investment revenue 1,250
Miscellaneous revenue 2,450
Totals 10,500 17,700
Expenditures Subsidiary Ledger:
General government 8,750
Public safety 125
Street and sanitation 1 ,750
Health and welfare 6,000
Community development 1,600
Parks and recreation 2,500
Totals 17,250 3,475