EVENT  DESCRIPTION

CUSTODIAL ACTIVITIES USING PERIODIC REVENUE METHOD (MODIFIED CASH METHOD - IRS)  

CUSTODIAL ACTIVITIES USING PERPETUAL REVENUE METHOD    

  (ACCRUAL METHOD - OTHER CUSTODIAL  ACTIVITIES)

**MISCELLANEOUS  RECEIPT   YEAR 1**

EVENT  DESCRIPTION

CUSTODIAL ACTIVITIES USING PERIODIC REVENUE METHOD (MODIFIED CASH METHOD- IRS)

CUSTODIAL ACTIVITIES USING PERPETUAL REVENUE METHOD

 (ACCRUAL METHOD - OTHER CUSTODIAL  ACTIVITIES)

1) To collect cash from public

*proprietary*

1010FBTW60

5800NTax revenue60

5990GCash Collec  for others60

2980GCustodial liabilities60

*budgetary*

None

*proprietary*

1010FBWT140

5800NTax revenue60

5900NOther revenue80

5990GCash Collec  for others140

2980GCustodial liabilities140

*budgetary*

None

2) To accrue revenue 

Note: IRS records its receivables at the end of the year.

*proprietary*

1325NTaxes receivable30

5801NAccrued tax revenue30

5991GAccrued coll for others30

2980GCustodial liabilities30

*budgetary*

None

*proprietary*

1310NAccounts receivable100

1325NTaxes receivable 30

1340NInterest receivable 25

1360NPenalties receivable 15

5310NInterest revenue  25

5320NPenalties revenue  15

5801NAccrued tax revenue 30

5900NOther revenue100

5991GAccrued coll others170

2980GCustodial liabilities 170

*budgetary*

None

3) To accrue uncollectible amounts.

*proprietary*

5809NContra rev for tax12

1329NAllow on taxes rec12

2980GCustodial liabilities12

5991Accrued coll others12

*budgetary*

None

*proprietary*

5319NContra rev for interest10

5329NContra rev for penalty 5

5809NContra rev for tax12

5909NContra rev for other30

1319NAllowance for bad debt30

1329NAllow on taxes rec12

1349NAllow for interest10

1369NAllow for Penalties  5

2980GCustodial liabilities57

5991GAccrued Coll for others57

*budgetary*

None

4) **ADJUSTMENT TO PRECLOSING TRIAL BALANCE:**

 The collecting agency makes a **year end adjusting entry**to clear its Fund 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.

*proprietary*

2980GCustodial liabilities60

1010FBWT60

*budgetary*

None

*proprietary*

2980GCustodial liabilities140

1010FBWT140

*budgetary*

None

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

IRS

OTHER CUSTODIAL ACTIVITIES

CONSOLIDATED TRIAL BALANCE

1010FBTW0

1325NTaxes receivable30

1329NAllow on taxes rec12

2980GCustodial liabilities18

5800NTax revenue60

5801NAccrued tax revenue30

5809NContra tax revenue12

5990GCash Collec for others60

5991GAccrued coll for others18 

120120

1010FBTW0

1310NAccounts receivable100

1319NAllow on taxes rec30

1325NTaxes receivable30

1329NAllow on taxes rec12

1340N Interest receivable25

1349NAllow for interest10

1360NPenalties receivable15

1369NAllowance for penalties5

2980GCustodial liabilities113

5310NInterest revenue25

5319NContra revenue 10

5320NPenalties revenue15

5329NContra revenue 5

5800NTax revenue60

5801NAccrued tax revenue30

5809NContra rev for tax12

5900NOther revenue180

5909NContra revenue30

5990GCash Collec for others140

5991GAccrued coll113

480480

XXXXCash200

1310NAccounts receivable100

1319NAllow on taxes rec 30

1325NTaxes receivable60

1329NAllow on taxes rec 24

1340N Interest receivable25

1349NAllow for interest 10

1360NPenalties receivable15

1369NAllowance for penalties  5

5310NInterest revenue 25

5319NContra revenue 10

5320NPenalties revenue 15

5329NContra revenue 5

5800NTax revenue120

5801NAccrued tax revenue60

5809NContra tax revenue24

5900NOther revenue180

5909NContra revenue30  

469469

**CLOSING ENTRIES FOR  YEAR 1**

IRS

OTHER CUSTODIAL ACTIVITIES

*proprietary*

5800NTax revenue60

5801NAccrued tax revenue30

3310Cumulative results90

3310Cumulative results90

5809NContra tax revenue12

5990GCash Collec for others60

5991GAccrued coll for others18 

*proprietary*

5310NInterest revenue25

5320NPenalties revenue15

5800NTax revenue60

5801NAccrued tax revenue30

5900NOther revenue180

3310Cumulative results310

3310Cumulative results310

5319NContra revenue 10

5329NContra revenue 5

5809NContra rev for tax12

5909NContra revenue30

5990GCash Collec for others140

5991GAccrued coll113

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

IRS  

OTHER CUSTODIAL ACTIVITIES

***Statement of Custodial Activity***

**Revenue Activity**

**Collections of Federal Receivable:**

Cash collections 

  5800Tax revenue coll60

Accrual adjustment:

  5801Accrued tax rev30

**less:**

  5809Contra revenue12

**Total revenue**78

**Disposition of revenue:**

**Collections for others**

  5990Cash Collec for others60

**Accrual adjustments**

  5991Accrued collections18

**Total disposition of revenue**78

  Net Revenue Activity  -0-

*Refunds50

*Appropriations used to pay (50)

for Refunds

  Net Refund Activity-0-

* IRS shows their Statement of Custodial Activity including refunds and appropriations used to pay for the refunds.  Refunds are not paid from the tax revenue collected but from a separate appropriations.

***Statement of Custodial Activity***

**Source of collections**:

**Cash collections:**

5310EInterest rev25

5319EContra interest(10)

5320E Penalties rev15

5329EContra to penalties(5)

5800ETax revenue collected60

5900EOther revenue180

5909EContra other revenue(30)  

*Subtotal*235

**Less:**

1310 (E-B)Accounts receivable100

1319 (E-B)Allowance to A/R     (30)

1340 (E-B)Interest Receivable25

1349 (E-B)Allowance to I/R(10)

1360 (E-B)Penalties receivable15

1369 (E-B)Allowance to penalties  ( 5)

*Subtotal*95

**Accrual adjustments:**

1310 (E-B)Accounts receivable100

1319 (E-B)Allowance to A/R     (30)

5801EAccrued tax revenue30

5809EContra tax revenue(12)

1340 (E-B)Interest Receivable25

1349 (E-B)Allowance to I/R(10)

1360 (E-B)Penalties receivable15

1369 (E-B)Allowance to penalties  ( 5)

*Subtotal*113

**Total revenue**253

**Disposition of revenue:**

Collections for others 

5990  Cash Collec for others140

5991Accrued collections113 

253

Net Custodial Activity-0-

**MISCELLANEOUS  RECEIPT   YEAR 2**

EVENT  DESCRIPTION

CUSTODIAL ACTIVITIES USING PERIODIC REVENUE METHOD (MODIFIED CASH METHOD - IRS)

CUSTODIAL ACTIVITIES USING PERPETUAL REVENUE METHOD (ACCRUAL METHOD - OTHER CUSTODIAL  ACTIVITIES)

1) IRS reverses entries that are  related to the receivables. 

*proprietary*

5801NAccrued tax revenue30

1325NTaxes receivable30

2980GCustodial liabilities30

5991GAccrued coll for others30

1329NAllow on taxes rec12

5809NContra rev for tax12

5991Accrued coll others12

2980GCustodial liabilities12

*budgetary*

None

*proprietary*

N/A

2) To collect cash from public

*proprietary*

1010FBTW90

5800NTax revenue90

5990GCash Collec for others90

2980GCustodial liabilities90

*budgetary*

None

*proprietary*

1010FBWT190

5800NTax revenue90

5900NOther revenue100

5990GCash Collec  for others190

2980GCustodial liabilities190

*budgetary*

None

3) To accrue revenue .

Note: IRS records its receivables at the end of the year.

*proprietary*

1325NTaxes receivable 100

5801NAcc tax revenue100

5991GAccrued coll others100

2980GCustodial liabilities100

*budgetary*

None

*proprietary*

1310NAccounts receivable150

1325NTaxes receivable 100

1340NInterest receivable 30

1360NPenalties receivable 20

5310NInterest revenue  30

5320NPenalties revenue 20

5900NOther revenue150

5801NAccrued tax revenue100

5991GAccrued coll others300

2980GCustodial liabilities300

*budgetary*

None

4 ) To collect receivable.

*proprietary*

N/A

*budgetary*

None

*proprietary*

1010FBWT225

1310NAccounts receivable120

1325NTaxes receivable80

1340NInterest receivable20

1360NPenalties receivable 5

5801NAccrued tax revenue80

5800NTax revenue80

5990GCash Collec for others225

5991GAccrued coll others225

*budgetary*

None

5) To accrue uncollectible amounts.

*proprietary*

5809Contra rev for tax20

1329NAllow on taxes rec20

2980GCustodial liabilities20

5991Accrued coll others20

*budgetary*

None

*proprietary*

5319Contra rev for interest10

5329Contra rev for penalty 5

5809Contra rev for tax20

5909Contra rev for other30

1319NAllowance for bad debt30

1329NAllowance for tax20

1349NAllow for interest10

1369NAllow for Penalties 5

2980GCustodial liabilities65

5991GAccrued Coll for others65

*budgetary*

None

6) To write off uncollectible receivables from prior year.  

*proprietary*

None

**Note:**Write off of receivables are included in the taxes receivable and allowance estimates.  

*budgetary*

None

*proprietary*

1319NAllowance for bad debt30

1329NAllowance for tax15

1349NAllow for interest10

1369NAllow for Penalties  5

1310NAccounts receivable30

1325NTaxes receivable15

1340NInterest receivable10

1360NPenalties receivable  5

*budgetary*

None

7) **ADJUSTMENT TO PRECLOSING TRIAL BALANCE:**

The collecting agency makes a **year end adjusting entry**to clear its Fund 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.

*proprietary*

2980GCustodial liabilities90

1010FBWT90

*budgetary*

None

*proprietary*

2980GCustodial liabilities415

1010FBWT415

*budgetary*

None

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

IRS

OTHER CUSTODIAL ACTIVITIES

CONSOLIDATED TRIAL BALANCE

1010FBTW0

1325NTaxes receivable100

1329NAllow on taxes rec20

2980GCustodial liabilities80

5800NTax revenue90

5801NAccrued tax revenue70

5809NContra tax revenue8

5990GCash Collec for others90

5991GAccrued coll for others62 

260260

1010FBTW0

1310NAccounts receivable100

1319NAllow on accounts rec30

1325NTaxes receivable35

1329NAllow on taxes rec17

1340N Interest receivable25

1349NAllow for interest10

1360NPenalties receivable25

1369NAllowance for penalties5

2980GCustodial liabilities123

5310NInterest revenue30

5319NContra revenue 10

5320NPenalties revenue20

5329NContra revenue 5

5800NTax revenue170

5801NAccrued tax revenue20

5809NContra rev for tax20

5900NOther revenue250

5909NContra revenue30  

5990GCash Collec for others415

5991GAccrued coll10 

675675

XXXXCash705

1310NAccounts rec100

1319NAllow - bad debt 30

1325NTaxes rec135

1329NAllow on tax 37

1340NInterest rec  25

1349NAllow- interest 10

1360NPenalties rec  25

1369NAllow - Penalties    5

3310Cumulative results331

5310NInterest revenue 30

5319NContra rev for interest10

5320NPenalties revenue  20

5329NContra rev for penalty 5

5800NTaxes revenue 260

5801NAcc tax rev    90

5809NContra tax revenue28

5900NOther revenue250

5909NContra rev for other30    

1,0631,063

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

Accounts

Beginning

Balance

Transactions During the year

Ending Balance

**IRS:**

1010FBTW

1325NTaxes receivable

1329NAllow on taxes rec

2980GCustodial liabilities

3310Cumulative results of operations

5800NTax revenue

5801NAccrued tax revenue

5809NContra tax revenue

5990GCash Collec for others

5991GAccrued coll for others

0

30

(12)

(18)

0

-0-

0

70

(8)

(62)

(90)

(70)

8

90

62

-0-

0

100

(20)

(80)

(90)

(70)

8

90

62

-0-

**Other Custodial Activities:**

1010FBTW

1310NAccounts receivable

1319NAllow on taxes rec

1325NTaxes receivable

1329NAllow on taxes rec

1340N Interest receivable

1349NAllow for interest

1360NPenalties receivable

1369NAllowance for penalties

2980GCustodial liabilities

3310Cumulative results of operations

5310NInterest revenue

5319NContra revenue 

5320NPenalties revenue

5329NContra revenue

5800NTax revenue

5801NAccrued tax revenue

5809NContra rev for tax

5900NOther revenue

5909NContra revenue

5990GCash Collec for others

5991GAccrued coll

0

100

(30)

30

(12)

25

(10)

15

(5)

(113)

0

  - 0-

0

0

0

5

(5)

0

0

10

0

(10)

(30)

10

(20)

5

(170)

(20)

20

(250)

30

415

10  

-0-

0

100

(30)

35

(17)

25

(10)

25

(5)

(123)

(30)

10

(20)

5

(170)

(20)

20

(250)

30

415

10

-0-

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

IRS

OTHER CUSTODIAL ACTIVITIES

*proprietary*

5800NTax revenue90

5801NAccrued tax revenue70

3310Cumulative results160

3310Cumulative results160

5809NContra tax revenue8

5990GCash Collec for others90

5991GAccrued coll for others62     

*proprietary*

5310NInterest revenue30

5320NPenalties revenue20

5800NTax revenue170

5801NAccrued tax revenue20

5900NOther revenue250

3310Cumulative results490

3310Cumulative results490

5319NContra revenue 10

5329NContra revenue 5

5809NContra rev for tax20

5909NContra revenue30  

5990GCash Collec for others415

5991GAccrued coll10

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

IRS  ****

OTHER CUSTODIAL AGENCIES****

****

***Statement of Custodial Activity***

**Revenue Activity**

**Collections of Federal Receivable:**

Cash collections 

  5800Tax revenue coll90

Accrual adjustment:

  5801Accrued tax rev70

**less:**

  5809Contra revenue8

**Total revenue**152

**Disposition of revenue:**

**Collections for others**

  5990Cash Collec for others90

**Accrual adjustments**

  5991Accrued collections62

**Total disposition of revenue**152

  Net Revenue Activity  -0-

*Refunds70

*Appropriations used to pay (70)

for Refunds

  Net Refund Activity-0-

* IRS shows their Statement of Custodial Activity including refunds and appropriations used to pay for the refunds.  Refunds are not paid from the tax revenue collected but from a separate appropriations.

****

***Statement of Custodial Activity***

**Source of collections**:

**Cash collections:**

5310EInterest rev30

5319EContra interest(10)

5320EPenalties rev20

5329EContra to penalties(5)

5800ETax revenue collected170

5900EOther revenue250

5909EContra other revenue(30)

*Subtotal*425

**Less:**

1310 (E-B)Accounts receivable0

1319 (E-B)Allowance to A/R     (0)

1340 (E-B)Interest Receivable0

1349 (E-B)Allowance to I/R(0)

1360 (E-B)Penalties receivable10

1369 (E-B)Allowance to penalties  (0)

*Subtotal*10

**Accrual adjustments:**

1310 (E-B)Accounts receivable0

1319 (E-B)Allowance to A/R     (0)

5801EAccrued tax revenue20

5809EContra tax revenue(20)

1340 (E-B)Interest Receivable0

1349 (E-B)Allowance to I/R(0)

1360 (E-B)Penalties receivable10

1369 (E-B)Allowance to penalties  (0)

*Subtotal*10

**Total revenue**425

**Disposition of revenue:**

Collections for others 

5990E  Cash Collec for others415

5991EAccrued collections10 

425

**Net Custodial Activity**-0-****

****

ENTITLEMENTS DUE AND PAYABLE2/23/99(social)

EVENT DESCRIPTION

TRANSACTION

1) To record social benefits paid to the recipients during the year.

*proprietary*

6400NBenefits Expense5,000

1010Fund Balance With Treasury5,000

3100Unexpended Authority5,000

5700Appropriations Used5,000

(For appropriated funds)

*budgetary*

4610Allotments - Realized resources5,000

or

*4620Other Funds Available for Commitment/Obligxxxx*

4902Expended Authority - pd5,000

2) To record accrual of social benefits due and payable at the end of accounting period.

*proprietary*

6400NBenefits Expense4,000

2160NEntitlements Due and Payable4,000

3100Unexpended Authority4,000

5700Appropriations Used4,000

(For appropriated funds)

*budgetary*

4610Allotments - Realized resources4,000

or

*4620Other Funds Available for Commitment/Obligxxxx*

4901Expended Authority - unpd4,000

� 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)

�  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 . . . .@     

1