Devry ACCT567 Week 2 Case Study I

ACCT 567 Week 2 Case Study IACCT567 Case Study I (Week 2)The General Fund of Middleville has presented you with the following trial balance as of June 30, 2011.Debits CreditsCash $ 40,000Taxes Receivable- Delinquent 142,000Estimated Uncollectible Taxes- Delinquent 9,100Interest and Penalties Receivable 32,000Vouchers Payable 24,000Budgetary Fund Balance-Reserve for Encumbrances 10,200Fund Balance _________ 170,700$ 214,000 $214,000The information that is being presented to you pertains to the transactions for the city of Middleville for the fiscal year ended June 30, 2012.The following budget was adopted by the city council:Estimated Revenues:Property Taxes $ 650,000Fines and Penalties 44,000Licenses and Permits 150,000Federal Grant 85,000929,000Appropriations and Other Financing UsesPublic Safety 402,000General Government 263,000Public Works 102,000Parks and Recreation 92,000Transfers Out 34,000893,000Encumbrances outstanding at the end of the year were re-opened. Property taxes of $ 660,000 were levied. It is estimated that 2.5% of the property taxes levied are expected to be uncollectible/ 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.Cash collected for the Federal Grant from the Federal Government, $ 94,000. Cash collected and transferred in as follows:Fines and Penalties 43,000Licenses and Permits 164,000Cash collected on property taxes were as follows: Current taxes, $559,000, Delinquent Taxes, $ 41,000 and $ 22,000 of interest and penalties were collected. Purchase orders issued in 2012 in the following amounts were filled in at the following amounts:Estimated ActualPublic Safety $ 395,000 $ 393,600General Government $ 259,000 $ 258,200Public Works $ 100,000 $ 99,400Parks and Recreation $ 98,000 $ 97,500————— —————$ 852,000 $ 848,700Vouchers paid amounted to $ 840,000 and the transfer out to the Debt Service Fund, $34,000. Please reclassify the Taxes Receivable –Current and Estimated Uncollectible Taxes- Change from Current to Delinquent.