**MISCELLANEOUS RECEIPT YEAR 1**

+--------------------+---------------------+---------------------------+
| EVENT DESCRIPTION  | CUSTODIAL           | CUSTODIAL ACTIVITIES      |
|                    | ACTIVITIES USING    | USING PERPETUAL REVENUE   |
|                    | PERIODIC REVENUE    | METHOD                    |
|                    | METHOD (MODIFIED    |                           |
|                    | CASH METHOD- IRS)   | (ACCRUAL METHOD - OTHER   |
|                    |                     | CUSTODIAL ACTIVITIES)     |
+--------------------+---------------------+---------------------------+
| 1\) To collect     | *[propri            | *[                        |
| cash from public   | etary]{.underline}* | proprietary]{.underline}* |
|                    |                     |                           |
|                    | 1010 FBTW 60        | 1010 FBWT 140             |
|                    |                     |                           |
|                    | > 5800N Tax revenue | > 5800N Tax revenue 60    |
|                    | > 60                | >                         |
|                    |                     | > 5900N Other revenue 80  |
|                    | 5990G Cash Collec   |                           |
|                    | for others 60       | 5990G Cash Collec for     |
|                    |                     | others 140                |
|                    | > 2980G Custodial   |                           |
|                    | > liabilities 60    | > 2980G Custodial         |
|                    |                     | > liabilities 140         |
|                    | *[budg              |                           |
|                    | etary]{.underline}* | *[budgetary]{.underline}* |
|                    |                     |                           |
|                    | None                | None                      |
+--------------------+---------------------+---------------------------+
| 2\) To accrue      | *[propri            | *[                        |
| revenue            | etary]{.underline}* | proprietary]{.underline}* |
|                    |                     |                           |
| Note: IRS records  | 1325N Taxes         | 1310N Accounts receivable |
| its receivables at | receivable 30       | 100                       |
| the end of the     |                     |                           |
| year.              | > 5801N Accrued tax | 1325N Taxes receivable 30 |
|                    | > revenue 30        |                           |
|                    |                     | 1340N Interest receivable |
|                    | 5991G Accrued coll  | 25                        |
|                    | for others 30       |                           |
|                    |                     | 1360N Penalties           |
|                    | > 2980G Custodial   | receivable 15             |
|                    | > liabilities 30    |                           |
|                    |                     | > 5310N Interest revenue  |
|                    | *[budg              | > 25                      |
|                    | etary]{.underline}* | >                         |
|                    |                     | > 5320N Penalties revenue |
|                    | None                | > 15                      |
|                    |                     | >                         |
|                    |                     | > 5801N Accrued tax       |
|                    |                     | > revenue 30              |
|                    |                     | >                         |
|                    |                     | > 5900N Other revenue 100 |
|                    |                     |                           |
|                    |                     | 5991G Accrued coll others |
|                    |                     | 170                       |
|                    |                     |                           |
|                    |                     | > 2980G Custodial         |
|                    |                     | > liabilities 170         |
|                    |                     |                           |
|                    |                     | *[budgetary]{.underline}* |
|                    |                     |                           |
|                    |                     | None                      |
+--------------------+---------------------+---------------------------+
| 3\) To accrue      | *[propri            | *[                        |
| uncollectible      | etary]{.underline}* | proprietary]{.underline}* |
| amounts.           |                     |                           |
|                    | 5809N Contra rev    | 5319N Contra rev for      |
|                    | for tax 12          | interest 10               |
|                    |                     |                           |
|                    | > 1329N Allow on    | 5329N Contra rev for      |
|                    | > taxes rec 12      | penalty 5                 |
|                    |                     |                           |
|                    | 2980G Custodial     | 5809N Contra rev for tax  |
|                    | liabilities 12      | 12                        |
|                    |                     |                           |
|                    | > 5991 Accrued coll | 5909N Contra rev for      |
|                    | > others 12         | other 30                  |
|                    |                     |                           |
|                    | *[budg              | > 1319N Allowance for bad |
|                    | etary]{.underline}* | > debt 30                 |
|                    |                     | >                         |
|                    | None                | > 1329N Allow on taxes    |
|                    |                     | > rec 12                  |
|                    |                     | >                         |
|                    |                     | > 1349N Allow for         |
|                    |                     | > interest 10             |
|                    |                     | >                         |
|                    |                     | > 1369N Allow for         |
|                    |                     | > Penalties 5             |
|                    |                     |                           |
|                    |                     | 2980G Custodial           |
|                    |                     | liabilities 57            |
|                    |                     |                           |
|                    |                     | > 5991G Accrued Coll for  |
|                    |                     | > others 57               |
|                    |                     |                           |
|                    |                     | *[budgetary]{.underline}* |
|                    |                     |                           |
|                    |                     | None                      |
+--------------------+---------------------+---------------------------+
| 4\) **ADJUSTMENT   | *[propri            | *[                        |
| TO PRECLOSING      | etary]{.underline}* | proprietary]{.underline}* |
| TRIAL BALANCE:**   |                     |                           |
|                    | 2980G Custodial     | 2980G Custodial           |
| The collecting     | liabilities 60      | liabilities 140           |
| agency makes a     |                     |                           |
| **year end         | > 1010 FBWT 60      | > 1010 FBWT 140           |
| adjusting          |                     |                           |
| entry**[^1] to     | *[budg              | *[budgetary]{.underline}* |
| clear its Fund     | etary]{.underline}* |                           |
| Balance with       |                     | None                      |
| Treasury to \$0.   | None                |                           |
|                    |                     |                           |
| Note: Cash flows   |                     |                           |
| into Treasury=s    |                     |                           |
| miscellaneous      |                     |                           |
| account throughout |                     |                           |
| the year. The cash |                     |                           |
| balances from the  |                     |                           |
| miscellaneous      |                     |                           |
| receipt accounts   |                     |                           |
| are picked up by   |                     |                           |
| the CFS as part of |                     |                           |
| their cash.        |                     |                           |
+--------------------+---------------------+---------------------------+

**PRE-CLOSING TRIAL BALANCE FOR MISCELLANEOUS RECEIPTS** **YEAR 1**

+----------------------+----------------------+------------------------+
| IRS                  | OTHER CUSTODIAL      | CONSOLIDATED TRIAL     |
|                      | ACTIVITIES           | BALANCE                |
+----------------------+----------------------+------------------------+
| 1010 FBTW 0          | 1010 FBTW 0          | XXXX Cash 200          |
|                      |                      |                        |
| 1325N Taxes          | 1310N Accounts       | 1310N Accounts         |
| receivable 30        | receivable 100       | receivable 100         |
|                      |                      |                        |
| 1329N Allow on taxes | 1319N Allow on taxes | 1319N Allow on taxes   |
| rec 12               | rec 30               | rec 30                 |
|                      |                      |                        |
| 2980G Custodial      | 1325N Taxes          | 1325N Taxes receivable |
| liabilities 18       | receivable 30        | 60                     |
|                      |                      |                        |
| 5800N Tax revenue 60 | 1329N Allow on taxes | 1329N Allow on taxes   |
|                      | rec 12               | rec 24                 |
| 5801N Accrued tax    |                      |                        |
| revenue 30           | 1340N Interest       | 1340N Interest         |
|                      | receivable 25        | receivable 25          |
| 5809N Contra tax     |                      |                        |
| revenue 12           | 1349N Allow for      | 1349N Allow for        |
|                      | interest 10          | interest 10            |
| 5990G Cash Collec    |                      |                        |
| for others 60        | 1360N Penalties      | 1360N Penalties        |
|                      | receivable 15        | receivable 15          |
| 5991G Accrued coll   |                      |                        |
| for others           | 1369N Allowance for  | 1369N Allowance for    |
| [18]{.underline}     | penalties 5          | penalties 5            |
|                      |                      |                        |
| > 120 120            | 2980G Custodial      | 5310N Interest revenue |
|                      | liabilities 113      | 25                     |
|                      |                      |                        |
|                      | 5310N Interest       | 5319N Contra revenue   |
|                      | revenue 25           | 10                     |
|                      |                      |                        |
|                      | 5319N Contra revenue | 5320N Penalties        |
|                      | 10                   | revenue 15             |
|                      |                      |                        |
|                      | 5320N Penalties      | 5329N Contra revenue 5 |
|                      | revenue 15           |                        |
|                      |                      | 5800N Tax revenue 120  |
|                      | 5329N Contra revenue |                        |
|                      | 5                    | 5801N Accrued tax      |
|                      |                      | revenue 60             |
|                      | 5800N Tax revenue 60 |                        |
|                      |                      | 5809N Contra tax       |
|                      | 5801N Accrued tax    | revenue 24             |
|                      | revenue 30           |                        |
|                      |                      | 5900N Other revenue    |
|                      | 5809N Contra rev for | 180                    |
|                      | tax 12               |                        |
|                      |                      | 5909N Contra revenue   |
|                      | 5900N Other revenue  | [30]{.underline}       |
|                      | 180                  |                        |
|                      |                      | > 469 469              |
|                      | 5909N Contra revenue |                        |
|                      | 30                   |                        |
|                      |                      |                        |
|                      | 5990G Cash Collec    |                        |
|                      | for others 140       |                        |
|                      |                      |                        |
|                      | 5991G Accrued coll   |                        |
|                      | [113]{.underline}    |                        |
|                      |                      |                        |
|                      | > 480 480            |                        |
+----------------------+----------------------+------------------------+

**CLOSING ENTRIES FOR YEAR 1**

+----------------------------------+-----------------------------------+
| IRS                              | OTHER CUSTODIAL ACTIVITIES        |
+----------------------------------+-----------------------------------+
| *[proprietary]{.underline}*      | *[proprietary]{.underline}*       |
|                                  |                                   |
| 5800N Tax revenue 60             | 5310N Interest revenue 25         |
|                                  |                                   |
| 5801N Accrued tax revenue 30     | 5320N Penalties revenue 15        |
|                                  |                                   |
| > 3310 Cumulative results 90     | 5800N Tax revenue 60              |
|                                  |                                   |
| 3310 Cumulative results 90       | 5801N Accrued tax revenue 30      |
|                                  |                                   |
| > 5809N Contra tax revenue 12    | 5900N Other revenue 180           |
| >                                |                                   |
| > 5990G Cash Collec for others   | > 3310 Cumulative results 310     |
| > 60                             |                                   |
| >                                | 3310 Cumulative results 310       |
| > 5991G Accrued coll for others  |                                   |
| > 18                             | > 5319N Contra revenue 10         |
|                                  | >                                 |
|                                  | > 5329N Contra revenue 5          |
|                                  | >                                 |
|                                  | > 5809N Contra rev for tax 12     |
|                                  | >                                 |
|                                  | > 5909N Contra revenue 30         |
|                                  | >                                 |
|                                  | > 5990G Cash Collec for others    |
|                                  | > 140                             |
|                                  | >                                 |
|                                  | > 5991G Accrued coll 113          |
+----------------------------------+-----------------------------------+

**FINANCIAL STATEMENTS FOR MISCELLANEOUS RECEIPTS FOR** **YEAR 1**

+-------------------------------+--------------------------------------+
| IRS                           | OTHER CUSTODIAL ACTIVITIES           |
+-------------------------------+--------------------------------------+
| ***[Statement of Custodial    | ***[Statement of Custodial           |
| Activity]{.underline}***      | Activity]{.underline}***[^2]         |
|                               |                                      |
| **Revenue Activity**          | **Source of collections**:           |
|                               |                                      |
| **Collections of Federal      | **Cash collections:**                |
| Receivable:**                 |                                      |
|                               | 5310E Interest rev 25                |
| Cash collections              |                                      |
|                               | 5319E Contra interest (10)           |
| 5800 Tax revenue coll 60      |                                      |
|                               | 5320E Penalties rev 15               |
| Accrual adjustment:           |                                      |
|                               | 5329E Contra to penalties (5)        |
| 5801 Accrued tax rev 30       |                                      |
|                               | 5800E Tax revenue collected 60       |
| **less:**                     |                                      |
|                               | 5900E Other revenue 180              |
| 5809 Contra revenue           |                                      |
| [12]{.underline}              | 5909E Contra other revenue           |
|                               | ([30)]{.underline}                   |
| **Total revenue** 78          |                                      |
|                               | > *Subtotal* 235                     |
| **Disposition of revenue:**   |                                      |
|                               | **Less:**                            |
| **Collections for others**    |                                      |
|                               | 1310 (E-B) Accounts receivable 100   |
| 5990 Cash Collec for others   |                                      |
| 60                            | 1319 (E-B) Allowance to A/R (30)     |
|                               |                                      |
| **Accrual adjustments**       | 1340 (E-B) Interest Receivable 25    |
|                               |                                      |
| 5991 Accrued collections      | 1349 (E-B) Allowance to I/R (10)     |
| [18]{.underline}              |                                      |
|                               | 1360 (E-B) Penalties receivable 15   |
| **Total disposition of        |                                      |
| revenue** 78                  | 1369 (E-B) [Allowance to             |
|                               | penalties]{.underline} [(            |
| Net Revenue Activity -0-      | 5)]{.underline}                      |
|                               |                                      |
| \*Refunds 50                  | > *Subtotal* 95                      |
|                               |                                      |
| \*Appropriations used to pay  | **Accrual adjustments:**             |
| (50)                          |                                      |
|                               | 1310 (E-B) Accounts receivable 100   |
| for Refunds                   |                                      |
|                               | 1319 (E-B) Allowance to A/R (30)     |
| Net Refund Activity -0-       |                                      |
|                               | 5801E Accrued tax revenue 30         |
| \* IRS shows their Statement  |                                      |
| of Custodial Activity         | 5809E Contra tax revenue (12)        |
| including refunds and         |                                      |
| appropriations used to pay    | 1340 (E-B) Interest Receivable 25    |
| for the refunds. Refunds are  |                                      |
| not paid from the tax revenue | 1349 (E-B) Allowance to I/R (10)     |
| collected but from a separate |                                      |
| appropriations.               | 1360 (E-B) Penalties receivable 15   |
|                               |                                      |
|                               | 1369 (E-B) [Allowance to             |
|                               | penalties]{.underline} [(            |
|                               | 5)]{.underline}                      |
|                               |                                      |
|                               | > *Subtotal* [113]{.underline}       |
|                               |                                      |
|                               | **Total revenue** 253                |
|                               |                                      |
|                               | **Disposition of revenue:**          |
|                               |                                      |
|                               | Collections for others               |
|                               |                                      |
|                               | 5990 Cash Collec for others 140      |
|                               |                                      |
|                               | 5991 Accrued collections             |
|                               | [113]{.underline}                    |
|                               |                                      |
|                               | > 253                                |
|                               |                                      |
|                               | Net Custodial Activity -0-           |
+-------------------------------+--------------------------------------+

**MISCELLANEOUS RECEIPT YEAR 2**

+----------------+------------------------+---------------------------+
| EVENT          | CUSTODIAL ACTIVITIES   | CUSTODIAL ACTIVITIES      |
| DESCRIPTION    | USING PERIODIC REVENUE | USING PERPETUAL REVENUE   |
|                | METHOD (MODIFIED CASH  | METHOD (ACCRUAL METHOD -  |
|                | METHOD - IRS)          | OTHER CUSTODIAL           |
|                |                        | ACTIVITIES)               |
+----------------+------------------------+---------------------------+
| 1\) IRS        | *[pro                  | *[                        |
| reverses       | prietary]{.underline}* | proprietary]{.underline}* |
| entries that   |                        |                           |
| are related to | 5801N Accrued tax      | N/A                       |
| the            | revenue 30             |                           |
| receivables.   |                        |                           |
|                | > 1325N Taxes          |                           |
|                | > receivable 30        |                           |
|                |                        |                           |
|                | 2980G Custodial        |                           |
|                | liabilities 30         |                           |
|                |                        |                           |
|                | > 5991G Accrued coll   |                           |
|                | > for others 30        |                           |
|                |                        |                           |
|                | 1329N Allow on taxes   |                           |
|                | rec 12                 |                           |
|                |                        |                           |
|                | > 5809N Contra rev for |                           |
|                | > tax 12               |                           |
|                |                        |                           |
|                | 5991 Accrued coll      |                           |
|                | others 12              |                           |
|                |                        |                           |
|                | > 2980G Custodial      |                           |
|                | > liabilities 12       |                           |
|                |                        |                           |
|                | *[b                    |                           |
|                | udgetary]{.underline}* |                           |
|                |                        |                           |
|                | None                   |                           |
+----------------+------------------------+---------------------------+
| 2\) To collect | *[pro                  | *[                        |
| cash from      | prietary]{.underline}* | proprietary]{.underline}* |
| public         |                        |                           |
|                | 1010 FBTW 90           | 1010 FBWT 190             |
|                |                        |                           |
|                | > 5800N Tax revenue 90 | > 5800N Tax revenue 90    |
|                |                        | >                         |
|                | 5990G Cash Collec for  | > 5900N Other revenue 100 |
|                | others 90              |                           |
|                |                        | 5990G Cash Collec for     |
|                | > 2980G Custodial      | others 190                |
|                | > liabilities 90       |                           |
|                |                        | > 2980G Custodial         |
|                | *[b                    | > liabilities 190         |
|                | udgetary]{.underline}* |                           |
|                |                        | *[budgetary]{.underline}* |
|                | None                   |                           |
|                |                        | None                      |
+----------------+------------------------+---------------------------+
| 3\) To accrue  | *[pro                  | *[                        |
| revenue .      | prietary]{.underline}* | proprietary]{.underline}* |
|                |                        |                           |
| Note: IRS      | 1325N Taxes receivable | 1310N Accounts receivable |
| records its    | 100                    | 150                       |
| receivables at |                        |                           |
| the end of the | > 5801N Acc tax        | 1325N Taxes receivable    |
| year.          | > revenue 100          | 100                       |
|                |                        |                           |
|                | 5991G Accrued coll     | 1340N Interest receivable |
|                | others 100             | 30                        |
|                |                        |                           |
|                | > 2980G Custodial      | 1360N Penalties           |
|                | > liabilities 10 0     | receivable 20             |
|                |                        |                           |
|                | *[b                    | > 5310N Interest revenue  |
|                | udgetary]{.underline}* | > 30                      |
|                |                        | >                         |
|                | None                   | > 5320N Penalties revenue |
|                |                        | > 20                      |
|                |                        | >                         |
|                |                        | > 5900N Other revenue 150 |
|                |                        | >                         |
|                |                        | > 5801N Accrued tax       |
|                |                        | > revenue 100             |
|                |                        |                           |
|                |                        | 5991G Accrued coll others |
|                |                        | 300                       |
|                |                        |                           |
|                |                        | > 2980G Custodial         |
|                |                        | > liabilities 300         |
|                |                        |                           |
|                |                        | *[budgetary]{.underline}* |
|                |                        |                           |
|                |                        | None                      |
+----------------+------------------------+---------------------------+
| 4 ) To collect | *[pro                  | *[                        |
| receivable.    | prietary]{.underline}* | proprietary]{.underline}* |
|                |                        |                           |
|                | N/A                    | 1010 FBWT 225             |
|                |                        |                           |
|                | *[b                    | > 1310N Accounts          |
|                | udgetary]{.underline}* | > receivable 120          |
|                |                        | >                         |
|                | None                   | > 1325N Taxes receivable  |
|                |                        | > 80                      |
|                |                        | >                         |
|                |                        | > 1340N Interest          |
|                |                        | > receivable 20           |
|                |                        | >                         |
|                |                        | > 1360N Penalties         |
|                |                        | > receivable 5            |
|                |                        |                           |
|                |                        | 5801N Accrued tax revenue |
|                |                        | 80                        |
|                |                        |                           |
|                |                        | > 5800N Tax revenue 80    |
|                |                        |                           |
|                |                        | 5990G Cash Collec for     |
|                |                        | others 225                |
|                |                        |                           |
|                |                        | > 5991G Accrued coll      |
|                |                        | > others 225              |
|                |                        |                           |
|                |                        | *[budgetary]{.underline}* |
|                |                        |                           |
|                |                        | None                      |
+----------------+------------------------+---------------------------+
| 5\) To accrue  | *[pro                  | *[                        |
| uncollectible  | prietary]{.underline}* | proprietary]{.underline}* |
| amounts.       |                        |                           |
|                | 5809 Contra rev for    | 5319 Contra rev for       |
|                | tax 20                 | interest 10               |
|                |                        |                           |
|                | > 1329N Allow on taxes | 5329 Contra rev for       |
|                | > rec 20               | penalty 5                 |
|                |                        |                           |
|                | 2980G Custodial        | 5809 Contra rev for tax   |
|                | liabilities 20         | 20                        |
|                |                        |                           |
|                | > 5991 Accrued coll    | 5909 Contra rev for other |
|                | > others 20            | 30                        |
|                |                        |                           |
|                | *[b                    | > 1319N Allowance for bad |
|                | udgetary]{.underline}* | > debt 30                 |
|                |                        | >                         |
|                | None                   | > 1329N Allowance for tax |
|                |                        | > 20                      |
|                |                        | >                         |
|                |                        | > 1349N Allow for         |
|                |                        | > interest 10             |
|                |                        | >                         |
|                |                        | > 1369N Allow for         |
|                |                        | > Penalties 5             |
|                |                        |                           |
|                |                        | 2980G Custodial           |
|                |                        | liabilities 65            |
|                |                        |                           |
|                |                        | > 5991G Accrued Coll for  |
|                |                        | > others 65               |
|                |                        |                           |
|                |                        | *[budgetary]{.underline}* |
|                |                        |                           |
|                |                        | None                      |
+----------------+------------------------+---------------------------+
| 6\) To write   | *[pro                  | *[                        |
| off            | prietary]{.underline}* | proprietary]{.underline}* |
| uncollectible  |                        |                           |
| receivables    | None                   | 1319N Allowance for bad   |
| from prior     |                        | debt 30                   |
| year.          | **Note:** Write off of |                           |
|                | receivables are        | 1329N Allowance for tax   |
|                | included in the taxes  | 15                        |
|                | receivable and         |                           |
|                | allowance estimates.   | 1349N Allow for interest  |
|                |                        | 10                        |
|                | *[b                    |                           |
|                | udgetary]{.underline}* | 1369N Allow for Penalties |
|                |                        | 5                         |
|                | None                   |                           |
|                |                        | > 1310N Accounts          |
|                |                        | > receivable 30           |
|                |                        | >                         |
|                |                        | > 1325N Taxes receivable  |
|                |                        | > 15                      |
|                |                        | >                         |
|                |                        | > 1340N Interest          |
|                |                        | > receivable 10           |
|                |                        | >                         |
|                |                        | > 1360N Penalties         |
|                |                        | > receivable 5            |
|                |                        |                           |
|                |                        | *[budgetary]{.underline}* |
|                |                        |                           |
|                |                        | None                      |
+----------------+------------------------+---------------------------+
| 7\)            | *[pro                  | *[                        |
| **ADJUSTMENT   | prietary]{.underline}* | proprietary]{.underline}* |
| TO PRECLOSING  |                        |                           |
| TRIAL          | 2980G Custodial        | 2980G Custodial           |
| BALANCE:**     | liabilities 90         | liabilities 415           |
|                |                        |                           |
| The collecting | > 1010 FBWT 90         | > 1010 FBWT 415           |
| agency makes a |                        |                           |
| **year end     | *[b                    | *[budgetary]{.underline}* |
| adjusting      | udgetary]{.underline}* |                           |
| entry** to     |                        | None                      |
| clear its Fund | None                   |                           |
| Balance with   |                        |                           |
| Treasury to    |                        |                           |
| \$0.           |                        |                           |
|                |                        |                           |
| Note: Cash     |                        |                           |
| flows into     |                        |                           |
| Treasury=s     |                        |                           |
| miscellaneous  |                        |                           |
| account        |                        |                           |
| throughout the |                        |                           |
| year. The cash |                        |                           |
| balances from  |                        |                           |
| the            |                        |                           |
| miscellaneous  |                        |                           |
| receipt        |                        |                           |
| accounts are   |                        |                           |
| picked up by   |                        |                           |
| the CFS as     |                        |                           |
| part of their  |                        |                           |
| cash.          |                        |                           |
+----------------+------------------------+---------------------------+

**PRE-CLOSING TRIAL BALANCE FOR MISCELLANEOUS RECEIPTS** **YEAR 2**

+-----------------------+-----------------------+----------------------+
| IRS                   | OTHER CUSTODIAL       | CONSOLIDATED TRIAL   |
|                       | ACTIVITIES            | BALANCE              |
+-----------------------+-----------------------+----------------------+
| 1010 FBTW 0           | 1010 FBTW 0           | XXXX Cash 705        |
|                       |                       |                      |
| 1325N Taxes           | 1310N Accounts        | 1310N Accounts rec   |
| receivable 100        | receivable 100        | 100                  |
|                       |                       |                      |
| 1329N Allow on taxes  | 1319N Allow on        | 1319N Allow - bad    |
| rec 20                | accounts rec 30       | debt 30              |
|                       |                       |                      |
| 2980G Custodial       | 1325N Taxes           | 1325N Taxes rec 135  |
| liabilities 80        | receivable 35         |                      |
|                       |                       | 1329N Allow on tax   |
| 5800N Tax revenue 90  | 1329N Allow on taxes  | 37                   |
|                       | rec 17                |                      |
| 5801N Accrued tax     |                       | 1340N Interest rec   |
| revenue 70            | 1340N Interest        | 25                   |
|                       | receivable 25         |                      |
| 5809N Contra tax      |                       | 1349N Allow-         |
| revenue 8             | 1349N Allow for       | interest 10          |
|                       | interest 10           |                      |
| 5990G Cash Collec for |                       | 1360N Penalties rec  |
| others 90             | 1360N Penalties       | 25                   |
|                       | receivable 25         |                      |
| 5991G Accrued coll    |                       | 1369N Allow -        |
| for others            | 1369N Allowance for   | Penalties 5          |
| [62]{.underline}      | penalties 5           |                      |
|                       |                       | 3310 Cumulative      |
| > 260 260             | 2980G Custodial       | results 331          |
|                       | liabilities 123       |                      |
|                       |                       | 5310N Interest       |
|                       | 5310N Interest        | revenue 30           |
|                       | revenue 30            |                      |
|                       |                       | 5319N Contra rev for |
|                       | 5319N Contra revenue  | interest 10          |
|                       | 10                    |                      |
|                       |                       | 5320N Penalties      |
|                       | 5320N Penalties       | revenue 20           |
|                       | revenue 20            |                      |
|                       |                       | 5329N Contra rev for |
|                       | 5329N Contra revenue  | penalty 5            |
|                       | 5                     |                      |
|                       |                       | 5800N Taxes revenue  |
|                       | 5800N Tax revenue 170 | 260                  |
|                       |                       |                      |
|                       | 5801N Accrued tax     | 5801N Acc tax rev 90 |
|                       | revenue 20            |                      |
|                       |                       | 5809N Contra tax     |
|                       | 5809N Contra rev for  | revenue 28           |
|                       | tax 20                |                      |
|                       |                       | 5900N Other revenue  |
|                       | 5900N Other revenue   | 250                  |
|                       | 250                   |                      |
|                       |                       | 5909N Contra rev for |
|                       | 5909N Contra revenue  | other                |
|                       | 30                    | [30]{.underline}     |
|                       |                       |                      |
|                       | 5990G Cash Collec for | > 1,063 1,063        |
|                       | others 415            |                      |
|                       |                       |                      |
|                       | 5991G Accrued coll    |                      |
|                       | [10]{.underline}      |                      |
|                       |                       |                      |
|                       | > 675 675             |                      |
+-----------------------+-----------------------+----------------------+

**PRE-CLOSING TRIAL BALANCE FOR YEAR 2** - **DETAIL**

+-------------------------------+----------+---------------+---------+
| Accounts                      | B        | Transactions  | Ending  |
|                               | eginning | During the    | Balance |
|                               |          | year          |         |
|                               | Balance  |               |         |
+-------------------------------+----------+---------------+---------+
| **IRS:**                      | 0        | 0             | 0       |
|                               |          |               |         |
| 1010 FBTW                     | 30       | 70            | 100     |
|                               |          |               |         |
| 1325N Taxes receivable        | \(12\)   | \(8\)         | \(20\)  |
|                               |          |               |         |
| 1329N Allow on taxes rec      | \(18\)   | \(62\)        | \(80\)  |
|                               |          |               |         |
| 2980G Custodial liabilities   | 0        | \(90\)        | \(90\)  |
|                               |          |               |         |
| 3310 Cumulative results of    | -0-      | \(70\)        | \(70\)  |
| operations                    |          |               |         |
|                               |          | 8             | 8       |
| 5800N Tax revenue             |          |               |         |
|                               |          | 90            | 90      |
| 5801N Accrued tax revenue     |          |               |         |
|                               |          | [62           | [6      |
| 5809N Contra tax revenue      |          | ]{.underline} | 2]{.und |
|                               |          |               | erline} |
| 5990G Cash Collec for others  |          | -0-           |         |
|                               |          |               | -0-     |
| 5991G Accrued coll for others |          |               |         |
+-------------------------------+----------+---------------+---------+
| **Other Custodial             | 0        | 0             | 0       |
| Activities:**                 |          |               |         |
|                               | 100      | 0             | 100     |
| 1010 FBTW                     |          |               |         |
|                               | \(30\)   | 0             | \(30\)  |
| 1310N Accounts receivable     |          |               |         |
|                               | 30       | 5             | 35      |
| 1319N Allow on taxes rec      |          |               |         |
|                               | \(12\)   | \(5\)         | \(17\)  |
| 1325N Taxes receivable        |          |               |         |
|                               | 25       | 0             | 25      |
| 1329N Allow on taxes rec      |          |               |         |
|                               | \(10\)   | 0             | \(10\)  |
| 1340N Interest receivable     |          |               |         |
|                               | 15       | 10            | 25      |
| 1349N Allow for interest      |          |               |         |
|                               | \(5\)    | 0             | \(5\)   |
| 1360N Penalties receivable    |          |               |         |
|                               | \(113\)  | \(10\)        | \(123\) |
| 1369N Allowance for penalties |          |               |         |
|                               | 0        | \(30\)        | \(30\)  |
| 2980G Custodial liabilities   |          |               |         |
|                               | \- 0-    | 10            | 10      |
| 3310 Cumulative results of    |          |               |         |
| operations                    |          | \(20\)        | \(20\)  |
|                               |          |               |         |
| 5310N Interest revenue        |          | 5             | 5       |
|                               |          |               |         |
| 5319N Contra revenue          |          | \(170\)       | \(170\) |
|                               |          |               |         |
| 5320N Penalties revenue       |          | \(20\)        | \(20\)  |
|                               |          |               |         |
| 5329N Contra revenue          |          | 20            | 20      |
|                               |          |               |         |
| 5800N Tax revenue             |          | \(250\)       | \(250\) |
|                               |          |               |         |
| 5801N Accrued tax revenue     |          | 30            | 30      |
|                               |          |               |         |
| 5809N Contra rev for tax      |          | 415           | 415     |
|                               |          |               |         |
| 5900N Other revenue           |          | [10           | [1      |
|                               |          | ]{.underline} | 0]{.und |
| 5909N Contra revenue          |          |               | erline} |
|                               |          | -0-           |         |
| 5990G Cash Collec for others  |          |               | -0-     |
|                               |          |               |         |
| 5991G Accrued coll            |          |               |         |
+-------------------------------+----------+---------------+---------+

**CLOSING ENTRIES** **FOR** **YEAR 2**

+------------------------------------+---------------------------------+
| IRS                                | OTHER CUSTODIAL ACTIVITIES      |
+------------------------------------+---------------------------------+
| *[proprietary]{.underline}*        | *[proprietary]{.underline}*     |
|                                    |                                 |
| 5800N Tax revenue 90               | 5310N Interest revenue 30       |
|                                    |                                 |
| 5801N Accrued tax revenue 70       | 5320N Penalties revenue 20      |
|                                    |                                 |
| > 3310 Cumulative results 160      | 5800N Tax revenue 170           |
|                                    |                                 |
| 3310 Cumulative results 160        | 5801N Accrued tax revenue 20    |
|                                    |                                 |
| > 5809N Contra tax revenue 8       | 5900N Other revenue 250         |
| >                                  |                                 |
| > 5990G Cash Collec for others 90  | > 3310 Cumulative results 490   |
| >                                  |                                 |
| > 5991G Accrued coll for others 62 | 3310 Cumulative results 490     |
|                                    |                                 |
|                                    | > 5319N Contra revenue 10       |
|                                    | >                               |
|                                    | > 5329N Contra revenue 5        |
|                                    | >                               |
|                                    | > 5809N Contra rev for tax 20   |
|                                    | >                               |
|                                    | > 5909N Contra revenue 30       |
|                                    | >                               |
|                                    | > 5990G Cash Collec for others  |
|                                    | > 415                           |
|                                    | >                               |
|                                    | > 5991G Accrued coll 10         |
+------------------------------------+---------------------------------+

**FINANCIAL STATEMENTS FOR MISCELLANEOUS RECEIPTS FOR** **YEAR 2**

+----------------------------------+-----------------------------------+
| IRS                              | OTHER CUSTODIAL AGENCIES          |
+----------------------------------+-----------------------------------+
| ***[Statement of Custodial       | ***[Statement of Custodial        |
| Activity]{.underline}***         | Activity]{.underline}***          |
|                                  |                                   |
| **Revenue Activity**             | **Source of collections**:        |
|                                  |                                   |
| **Collections of Federal         | **Cash collections:**             |
| Receivable:**                    |                                   |
|                                  | 5310E Interest rev 30             |
| Cash collections                 |                                   |
|                                  | 5319E Contra interest (10)        |
| 5800 Tax revenue coll 90         |                                   |
|                                  | 5320E Penalties rev 20            |
| Accrual adjustment:              |                                   |
|                                  | 5329E Contra to penalties (5)     |
| 5801 Accrued tax rev 70          |                                   |
|                                  | 5800E Tax revenue collected 170   |
| **less:**                        |                                   |
|                                  | 5900E Other revenue 250           |
| 5809 Contra revenue              |                                   |
| [8]{.underline}                  | 5909E Contra other revenue        |
|                                  | [(30)]{.underline}                |
| **Total revenue** 152            |                                   |
|                                  | > *Subtotal* 425                  |
| **Disposition of revenue:**      |                                   |
|                                  | **Less:**                         |
| **Collections for others**       |                                   |
|                                  | 1310 (E-B) Accounts receivable 0  |
| 5990 Cash Collec for others 90   |                                   |
|                                  | 1319 (E-B) Allowance to A/R (0)   |
| **Accrual adjustments**          |                                   |
|                                  | 1340 (E-B) Interest Receivable 0  |
| 5991 Accrued collections         |                                   |
| [62]{.underline}                 | 1349 (E-B) Allowance to I/R (0)   |
|                                  |                                   |
| **Total disposition of revenue** | 1360 (E-B) Penalties receivable   |
| 152                              | 10                                |
|                                  |                                   |
| Net Revenue Activity -0-         | 1369 (E-B) [Allowance to          |
|                                  | penalties]{.underline}            |
| \*Refunds 70                     | [(0)]{.underline}                 |
|                                  |                                   |
| \*Appropriations used to pay     | > *Subtotal* 10                   |
| (70)                             |                                   |
|                                  | **Accrual adjustments:**          |
| for Refunds                      |                                   |
|                                  | 1310 (E-B) Accounts receivable 0  |
| Net Refund Activity -0-          |                                   |
|                                  | 1319 (E-B) Allowance to A/R (0)   |
| \* IRS shows their Statement of  |                                   |
| Custodial Activity including     | 5801E Accrued tax revenue 20      |
| refunds and appropriations used  |                                   |
| to pay for the refunds. Refunds  | 5809E Contra tax revenue (20)     |
| are not paid from the tax        |                                   |
| revenue collected but from a     | 1340 (E-B) Interest Receivable 0  |
| separate appropriations.         |                                   |
|                                  | 1349 (E-B) Allowance to I/R (0)   |
|                                  |                                   |
|                                  | 1360 (E-B) Penalties receivable   |
|                                  | 10                                |
|                                  |                                   |
|                                  | 1369 (E-B) [Allowance to          |
|                                  | penalties]{.underline}            |
|                                  | [(0)]{.underline}                 |
|                                  |                                   |
|                                  | > *Subtotal* 10                   |
|                                  |                                   |
|                                  | **Total revenue** 425             |
|                                  |                                   |
|                                  | **Disposition of revenue:**       |
|                                  |                                   |
|                                  | Collections for others            |
|                                  |                                   |
|                                  | 5990E Cash Collec for others 415  |
|                                  |                                   |
|                                  | 5991E Accrued collections         |
|                                  | [10]{.underline}                  |
|                                  |                                   |
|                                  | > 425                             |
|                                  |                                   |
|                                  | **Net Custodial Activity** -0-    |
+----------------------------------+-----------------------------------+

ENTITLEMENTS DUE AND PAYABLE 2/23/99(social)

+--------------------------+--------------------------------------------+
| EVENT DESCRIPTION        | TRANSACTION                                |
+--------------------------+--------------------------------------------+
| 1\) To record social     | *[proprietary]{.underline}*                |
| benefits paid to the     |                                            |
| recipients during the    | 6400N Benefits Expense 5,000               |
| year.                    |                                            |
|                          | > 1010 Fund Balance With Treasury 5,000    |
|                          |                                            |
|                          | 3100 Unexpended Authority 5,000            |
|                          |                                            |
|                          | > 5700 Appropriations Used 5,000           |
|                          | >                                          |
|                          | > (For appropriated funds)                 |
|                          |                                            |
|                          | *[budgetary]{.underline}*                  |
|                          |                                            |
|                          | 4610 Allotments - Realized resources 5,000 |
|                          |                                            |
|                          | or                                         |
|                          |                                            |
|                          | *4620 Other Funds Available for            |
|                          | Commitment/Oblig xxxx*                     |
|                          |                                            |
|                          | > 4902 Expended Authority - pd 5,000       |
+--------------------------+--------------------------------------------+
| 2\) To record accrual of | *proprietary*                              |
| social benefits due and  |                                            |
| payable at the end of    | 6400N Benefits Expense 4,000               |
| accounting period.       |                                            |
|                          | > 2160N Entitlements Due and Payable 4,000 |
|                          |                                            |
|                          | 3100 Unexpended Authority 4,000            |
|                          |                                            |
|                          | > 5700 Appropriations Used 4,000           |
|                          | >                                          |
|                          | > (For appropriated funds)                 |
|                          |                                            |
|                          | *budgetary*                                |
|                          |                                            |
|                          | 4610 Allotments - Realized resources 4,000 |
|                          |                                            |
|                          | or                                         |
|                          |                                            |
|                          | *4620 Other Funds Available for            |
|                          | Commitment/Oblig xxxx*                     |
|                          |                                            |
|                          | > 4901 Expended Authority - unpd 4,000     |
+--------------------------+--------------------------------------------+

[^1]: General fund receipt account balances are swept automatically each
    year by Treasury=s central accounting system, STAR. Agencies must
    zero out the balances of account 1010, Fund Balance with Treasury in
    their general ledger prior to the FACTS transmission. This will
    avoid double counting of these funds, otherwise these funds will be
    counted in the agency=s Fund Balance with Treasury (1010) as well as
    general receipts of the Treasury (cash). This entry is not a 224
    transaction. (DRAFT Unavailable Special Receipt Accounts, Credit
    Reform Case Study)

[^2]: Revenue Standard para 139 A . . . .when the entity recognize
    virtually no cost in earning the exchange revenue . . . . . .@ Para
    142, A . . . . account for the exchange revenue as a custodial
    activity . . . .@