Cases C4-1 (Journal Entries and Financial Statements- Clark County, Nevada, Road
ID: 2577466 • Letter: C
Question
Cases C4-1 (Journal Entries and Financial Statements- Clark County, Nevada, Road Fund) The State of Nevada levies a tax on motor fuel purchased in the state. The state distributes the portion of the tax collected in each county to that county the month after the taxes are collected. The portion of this shared revenue that each county receives may only be used for road and street maintenance or construction. Clark County, Nevada, uses a Road Special Revenue Fund to account for its share of the motor fuel tax received from the state. The transactions of the Clark County Road Fund for the fiscal year ended June 30. 20x are listed here. Assume that all revenues of the fund are susceptible to accrual in the fiscal year that they become receivable. (All amounts are in thousands of dollars.) 1. Motor fuel taxes collected in Clark County during the fiscal year totaled $23,858. All of the except county's distributions from the state were collected before the end of the fiscal vear the distribution for the June 30, 20X6, motor fuel taxes. This distribution, $4,000, h determined and will be received during July 20X6. 2. Interest collected on investments totaled $959 during the year, including $95 of interest 3·The County collected $751 of charges to several hotel developers for work performed dur- 4. Salaries, wages, and employee benefit costs for the year totaled S12,100 for the year. Of 5. Capitalizable road construction costs totaled $7,527. Maintenance services on the roads and 6. The General Fund transferred $757 in cash to the Road Fund during the year. receivable accrued on June 30, 20X5. ing the fiscal year these costs, $395 had not been paid as of June 30. streets totaled $6,566·$1,000 remained unpaid as of June 30, 20X6 7. Interest receivable accrued at June 30, 20x6, was $111. In addition to these transactions, the following information is known about the fund: Total cash and investments at the end of the fiscal year totaled $13,819 Accounts receivable as of June 30, 20X6, were $778. Vouchers payable balances, including that from transaction 5, as of June 30, 20x6, were $1,812. Fund balance at the beginning of the fiscal year was $16,353 encumbrances at the end of the fiscal year were $1,167. All encumbrances relate to items that will be financed from the road tax. All but $600 of ending fund balance is derived from the road tax. 1. Prepare journal entries to record the activities of the Clark County Road Fund for the fiscal Requ a statement of revenues, 6, for the Clark County Road F 2. expen ditures, and changes in fund balance as of June 30, ensive annual financial report for Clark City of Savannah, Georgia) Presented here is the 3. Prepare a balance sheet as of June 30, 20x6, for the Clark County Road Fund. This case was based on the information in a c County, Nevada. C4-2 (Financial Statement Trial Balance for of Savannah, Georgia's General Fund as of December 31, 20x6 (w ). Assume the following f D I related to activities financed fromExplanation / Answer
Cash - Debit $19,858
Receivable from state - Debit $4,000
To Road special revenue fund - Credit $23,858
(Revenue intergovernmental)
(record of motor fuel taxes collected and due from state)
Cash - Debit $959
To Interest revenues - $864
To Interest receivables - $95
(record of interest collected and interest receivables during 2015)
Cash - Debit $751
To Revenue - fees from developers - Credit $751
(record of collection of charges from hotel developers)
Salaries expenses - Debit $12,100
To Cash - Credit $11,705
To Salary payable - Credit $395
(record of payroll entries as of June 30)
Construction expenditure - Debit $7,527
Maintenance service expenditure - Debit $6,566
To Cash - Credit 13,093
To voucher payable - Credit $1,000
(being record of road construction cost and maintenance service cost as of June 30)
Cash - $757
To General fund - Credit $757
(being record of cash transferred from general fund)
Interest receivables - Debit $111
To Interest revenue - Credit $111
(accrue of interest receivable as of June 30 2016)
Statement of revenue, expenditures and changes in fund balance for the year
Amount
To Road special revenue fund
23,858
Interest
975
Revenue fees
751
Total revenue
25,584
Expenditure
Maintenance and salary expenses
18666
Capital expenditure
7527
Total Expenditure
26193
Excess of revenue over expenditure
-609
cash transfer from general fund
757
Net Change
148
Opening balance Fund balance
16,353
Closing fund balance
16,501
Amount
Amount
Cash and investment - Beginning balance
13,819
Accounts receivables
778
Receivable from state - Debit
4000
Interest receivable
111
Total Asset
18,708
Liabilities
Voucher payable
1812
Accrued salary
395
2207
Restricted
15,901
From road tax
600
16501
Total liabilities and fund balance
18708
Statement of revenue, expenditures and changes in fund balance for the year
Amount
To Road special revenue fund
23,858
Interest
975
Revenue fees
751
Total revenue
25,584
Expenditure
Maintenance and salary expenses
18666
Capital expenditure
7527
Total Expenditure
26193
Excess of revenue over expenditure
-609
cash transfer from general fund
757
Net Change
148
Opening balance Fund balance
16,353
Closing fund balance
16,501