Question

Gilbert City had the following transactions involving resource inflows into its general fund for the year ended June 30, 20X8:

Answer 1

Answer:

Gilbert City

A Schedule showing the amount of revenue in the general fund:

1. July 20X7     Property Taxes       $2,200,000

2. Apr. 1, 2018  Interest on Advance         1,500

4.         2018     Grant Monies               265,000

5. June 30       Sales Tax                       135,000

5. June 30       Additional Sales Taxes  22,000

6. July 20X7    Liquor Licenses             78,000

Total Revenue                                 $2,701,500

Explanation:

Gilbert City, like other government bodies, reports its transactions on the accrual basis.  For Gilbert City, this implies that the city will report all revenues receivable, whether actually received or not.  And the city only reports the revenues that pertain to the current fiscal period in the current period.  Gilbert City's revenues attributed to past and future years do not form part of the revenue for the current period.  Gilbert City's reporting basis is in line with the accrual concept and the matching principle of Generally Accepted Accounting Principles.