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Comprehensive General FundEntries and Statements Data relating to the general fund of the Quarryville School District are:
QUARRYVILLE SCHOOL DISTRICT
General Fund Balance Sheet
June 30, 2019
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200,000
Taxes receivable (net of $100,000
allowance for uncollectible taxes). . . 400,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . 150,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,750,000
Liabilities and fund balances
Accounts payable. . . . . . . . . . . . $ 30,000
Fund balances:
Nonspendable . . . . . . . . . . . . 150,000
Assigned . . . . . . . . . . . . . . . . . 20,000
Unassigned . . . . . . . . . . . . . . . 1,550,000
Total . . . . . . . . . . . . . . . . . . . . . . $1,750,000
Quarryville uses the GAAP budgetary basis for encumbrances and the consumption method for inventory. The fund balanceassigned balance consists of outstanding encumbrances.
Additional information for fiscal 2020:
1. The fiscal 2020 budget included $3,400,000 in expected revenue, all from property taxes, estimated
other financing uses of $80,000, and appropriations of $3,310,000. The tax levy was for $4,000,000.
2. Tax collections during fiscal 2020 were as follows:
Fiscal 2019 taxes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 425,000
Fiscal 2020 taxes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800,000
3. Of the fiscal 2020 taxes uncollected at year-end, 20 percent are considered uncollectible, and the
rest are expected to be collected within 60 days of year-end. Remaining unpaid fiscal 2019 taxes are
written off.
4. Old school desks were sold for $10,000 in cash.
5. New desks were purchased for $500,000 in cash.
6. Vandalism to the schools resulted in $20,000 of unexpected repair and cleanup costs, paid in cash.
7. Salary expenditures by the general fund were $2,500,000 in cash.
8. Supplies ordered in fiscal 2019 were received in fiscal 2020, and invoiced at the amount encum
bered. In addition, supplies of $170,000 were purchased in fiscal 2020. Supplies on hand at year-end
totaled $125,000, per annual physical inventory.
9. Accounts payable of $25,000 were outstanding at the end of fiscal 2020, and $50,000 was encum
bered for goods ordered but not yet received.
10. Cash of $80,000 was paid to the enterprise fund, as the school districts support for its operating
costs.
Required
a. Prepare all the fiscal 2020 journal entries, including beginning-of-year adjustments and closing en
tries, for the school districts general fund.
b. Prepare a fiscal 2020 statement of revenues, expenditures, and changes in fund balances and the June
30, 2020 balance sheet for the general fund
Answer & Explanation
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