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Chapter 4 - 4-3 a Calculation of Estimated Required Tax...

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4-3. a . Calculation of Estimated Required Tax Anticipation Financing Estimated Expenditure Requirements: Budgeted expenditures, remainder of FY 2011 $2,470,000 Current liabilities payable 830,000 $3,300,000 Estimated Resources Available: Cash on hand, April 1, 2011 740,000 Collections of budgeted FY 2011 revenues and delinquent property taxes, including interest and penalties 1,100,000 1,840,000 Estimated Amount of Required Tax Anticipation Note Financing $1,460,000 b . General Fund and Governmental Activities: Debits Credits CASH 1,460,000 TAX ANTICIPATION NOTES PAYABLE 1,460,000 b. General Fund: TAX ANTICIPATION NOTES PAYABLE 1,460,000 EXPENDITURES—2011 36,500 CASH 1,496,500 Governmental Activities: TAX ANTICIPATION NOTES PAYABLE 1,460,000 EXPENSES—INTEREST ON TANs 36,500 CASH 1,496,500 (Note: Interest on notes is $1,460,000 X .05 X 6/12 =$36,500)
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4-5. a . General Fund: INVENTORY OF SUPPLIES 15,000 RESERVE FOR INVENTORY OF SUPPLIES 15,000 Governmental Activities: INVENTORY OF SUPPLIES 15,000 EXPENSES (VARIOUS FUNCTIONS) 15,000 (Note: Inventory consumed = Beginning Inventory + Purchases – Ending inventory, or $140,000 + $720,000 - $155,000 = $705,000. This is the amount that expenses should equal for the year.) b . General Fund: INVENTORY OF SUPPLIES 15,000 EXPENDITURES 15,000 FUND BALANCE 15,000 RESERVE FOR INVENTORY OF SUPPLIES 15,000 Governmental Activities: Same as part a
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4-7.
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