Question: The January 1, 2015, trial balance, the
The January 1, 2015, trial balance, the calendar-year 2015 budget, and the 2015 transactions of the City of Roseburg are presented here: 
City of Roseburg Budget for General Fund Calendar Year 2015 Estimated Revenue City vehicle and retail license fees ……………………………………………….. $ 252,000 Property taxes …………………………………………………………………………….. 1,448,000 City sales tax ………………………………………………..………………………………… 327,000 Collections for trash service …………………………………………………………….. 153,000 Sale of city-owned property ………………………………………………………………. 88,000 Total estimated revenue …………………………………………………………….. 2,268,000 Appropriations General government ……………………………………………………………………… 261,000 Public safety and security ………………………………………………………………. 875,000 Health and welfare ……………………………………………………………………….. 434,000 Recreation and parks …………………………………………………………………….. 126,000 Street maintenance ………………………………………………………………………. 367,000 Sanitation ………………………………………………………………………………………. 162,000 Total appropriations ……………………………………………………………………… 2,225,000 Excess of Revenues over Appropriations …………………………………………… 43,000 Transfer from Water and Sewer Fund ………………………………………………. 118,000 Less Payments (transfers) to Debt Service Funds ……………………………. (55,000) Excess of Revenue and Fund Transfers to General Fund over Appropriations and Fund Transfers out of General Fund ……………………………………………………… $ 106,000 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: Vehicle license fees and parking fines ……………………………………………….. $ 98,682 Retail license fees ………………………………………………………………………………. 130,000 For trash services (including $28,675 due at end of prior year) ……………………………………………………………………… 148,720 Transfer from Water and Sewer Fund ……………………………………………….. 118,000 14. Cash purchases of printed forms and other office supplies for the year amounted to $57,680. 15. 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. 16. Checks were issued in payment of outstanding vouchers totaling $1,207,100. 17. End-of-year activities: (adjustments) Supplies Inventory 12/31/15: $38,250 Accrued interest on CDs at 5% The city uses the purchases method to account for supplies expenditures. Required: A. Enter the opening trial balance data in t-accounts. B. Prepare journal entries for the year’s transactions. Do not include entries for year-end adjustments. Post entries to t-accounts. C. Prepare a preclosing trial balance. D. Prepare journal entries to adjust the Supplies Inventory and record the interest on the CDs. E. Prepare journal entries to close the revenue, expenditures, and encumbrance accounts. F. Prepare a comparative balance sheet for 2014–2015. G. Prepare a statement of revenues, expenditures, and changes in fund balance for 2015.
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City of Roseburg Trial Balance January 1, 2015 Debit Credir Cash $155,450 Certificates of Deposit 200,000 Accounts Receivable 28,675 Supplied Inventory 37,600 Due from Federal Government 58,000 Property Taxes Receivable 75,600 Allowance for Uncollectible Taxes $ 32,150 Vouchers Payable Fund Balance-Unassigned 181,000 226,075 Fund Balance-Nonspendable (inventory) 37,600 Fund Balance-Assigned (encumbrances) 78,500 $555,325 $555,325
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