03 (10 Points) The following budget and transactions relate to the General Fund of the Village of Buffalo Falls for the ear ended December 31. 2017:
Estimated revenues
Properly tax 400,000
Sales tax 350.000
Fines and penalties 250.000
Rental charges 200,000
Appropriations services 120.000
Travel & Transportations 110,000
Equipments 380.000
Supplies 60.000
Salaries 430.000
If you know that property ownership in the village belongs to four property owners as below:
Edward 140.000
Arthur 120,000
Harrison 80.000
Teddy 60.000
1. During the year taxes were collected in property
$60,000 from Edward,
$120,000 from Arthur,
$60,000 from Teddy,
$50,000 from Harrison.
2. Due to a change in economic conditions the village budget committee expect an increase in sales taxes in amount of 550,000.
3. A contract was signed with a CPA to provide the annual audit in the amount of $15,200.
4. Contracted services were performed to the village with invoices amounting to $100,000.
5. The village contracted to have alarm systems (Equipments) installed in the administration building at a cost of $46,000. The systems were installed and the amount was paid. 6. the village ordered different equipments during the year in amount of $320,000.
7. The equipment arrived with an invoice in amount of $325,000.
8. The village paid out salaries in amount of $430,000 to the employees 9. The Village accounting department received from the board members and managers invoices for travel and transportations in amount of 5105.000.
10. The village purchased supplies in amount of $60,000 and then paid out to the suppliers two thirds of the amount in cash.
11. The village collected taxes in amount of $395,000 during the year, $270,000 from fines and penalties. $200.000 from rental of its warehouses.
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Requirements-
Record the journal entries related to the budget at the beginning of the year, set up property tax receivables, Journalize the transactions above. Then closing entries.
