90.2K

Verified Solution

Link Copied!

image

For years beginning January $1,201,$ the City of Hope will finance its parks and

recreation activities with a special property tax levy and it will account for resources

related to parks and recreation in a special revenue fund. During $201,$ it engaged in

the following transactions:

The parks and recreation employees earned $$4\mathrm{.}5$ million in wages and salaries.

Of this amount, the city paid $$4\mathrm{.}1$ million in $201$ and will pay the balance

sometime in $202$

Parks and recreation employees earned $$\mathrm{.}26$ million in vacation leave and

were paid for $$0\mathrm{.}20$ million. The city estimates that it will pay the entire

balance in early $202.$

During $201,$ the city received in parks and recreation supplies $$\mathrm{.}70$ million,

used $$\mathrm{.}55$ million and paid $$\mathrm{.}50$ million. The city uses the consumption

method to account for supplies inventory

In January $201,$ the city purchased $$1$ million in parks and recreation

equipment. It paid $$0\mathrm{.}20$ million in cash and gave an installment note for the

balance. The first payment on the note $($ $$\mathrm{.}30$ million plus interest of $$0\mathrm{.}05$

million$)$ is due on January $12,202.$

Required:

How much should the Total Expenditures and Other Financing Sources be reported

in "Parks and Recreation Fund Statement of Revenues, Expenditures, and Changes

in Fund Balance for Year Ending December $31,201$ respectively? Please show

step by step calculation or demonstrate T Account details in order to receive

credits.

Answer & Explanation Solved by verified expert

See Answer