PROBLEM 4-6 Please complete all parts and show all work The following informatio
ID: 2549143 • Letter: P
Question
PROBLEM 4-6
Please complete all parts and show all work
The following information was abstracted from the accounts of the General Fund of the City of Rome after the books had been closed for the fiscal year ended June 30, 2017 Postclosing Trial Balance June 30 2016 Transactions July 1, 2016, to June 30, 2017 Postclosing Trial Balance June 30 2017 Debits Credits Cash Taxes Receivable $490,000 $1,274,000 $1,310,400 $453,600 1,316,000 279,600 28,000 64,400 $518,000 $518,000 Allowance for 5.600 Uncollectible Taxes Accounts Payable Fund Balance 5,600 92,400 7,000 1,296,400 1,218,000 77,000 7,000 14,000 497,000 $518,000 420,000 $518,000 There were no transfers into the General Fund, but there was one transfer out. Prepare journal entries to record the transactions for the fiscal year ended June 30, 2017. Include closing entriesExplanation / Answer
1) Cash .............................................. $1,274,000
To Revenue..................................... $1,274,000
(Cash recevied on account of revenue and other income)
2) Payments.......................................... $1,310,400
To Cash............................................. $1,310,400
(Cash paid on account of purchases and other expenses)
3) Tax Receivable .................................. $ 1,316,000
To Tax Expenses................................. $ 1,316,000
(Being Excess of tax paid than actually payable)
4) Cash...................................................... $ 1,279,600
To Tax Receivable................................. $ 1,279,600
(Being Tax Refund received)
5) Allowance for Uncollectible Taxes............ $ 5,600
To Expense...............................................$ 5,600
(Being allowance written off)
6) Expense .................................................... $ 7,000
To Allowance for Uncollectible Taxes.......... $ 7,000
(Being new allowance made)
7) Accounts payable ....................................... $ 1,296,400
To Cash........................................................ $ 1,296,400
(Being Creditors payments made)
8) Expense....................................................... $ 1,296,400
To Accounts Payable................................... $ 1,296,400
(Being New Creditors recorded)
9) Cash ............................................................. $ 77,000
To General Fund........................................... $ 77,000
(Being Transfer in to the General Fund)
10) Revenue....................................................... $ 2,595,600 (1,274,000+1,316,000+5,600)
To Income Summary...................................... $ 2,595,600
(Being closing entry on revenue)
11) Income Summary............................................$ 2,613,800 (1,310,400+ 7000+ 1,218,000)
To Payments & Expenses............................... $ 2,613,800
(Being Closing Entry on payments and expenses)
12) Retained Earnings........................................... $ 18,200
To Income Summary......................................... $ 18,200
(Being Loss transferred to retained earnings)
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