12 CFR Appendix E
Arithmetic Steps
November 10, 2020
I. Example Illustrating Aggregate Analysis
Assumptions
Disbursements:
$360 for school taxes disbursed on September 20
$1,200 for county property taxes:
$500 disbursed on July 25
$700 disbursed on December 10
Cushion: One-sixth of estimated annual disbursements
Settlement: May 15
First Payment: July 1
Step 1—Initial Trial Balance
Open Table
| Aggregate | |||
|---|---|---|---|
| pmt | disb | bal | |
| Jun | 0 | 0 | 0 |
| Jul | 130 | 500 | −370 |
| Aug | 130 | 0 | −240 |
| Sep | 130 | 360 | −470 |
| Oct | 130 | 0 | −340 |
| Nov | 130 | 0 | −210 |
| Dec | 130 | 700 | −780 |
| Jan | 130 | 0 | −650 |
| Feb | 130 | 0 | −520 |
| Mar | 130 | 0 | −390 |
| Apr | 130 | 0 | −260 |
| May | 130 | 0 | −130 |
| Jun | 130 | 0 | 0 |
Step 2—Adjusted Trial Balance
[Increase monthly balances to eliminate negative balances]
Open Table
| Aggregate | |||
|---|---|---|---|
| pmt | disb | bal | |
| Jun | 0 | 0 | 780 |
| Jul | 130 | 500 | 410 |
| Aug | 130 | 0 | 540 |
| Sep | 130 | 360 | 310 |
| Oct | 130 | 0 | 440 |
| Nov | 130 | 0 | 570 |
| Dec | 130 | 700 | 0 |
| Jan | 130 | 0 | 130 |
| Feb | 130 | 0 | 260 |
| Mar | 130 | 0 | 390 |
| Apr | 130 | 0 | 520 |
| May | 130 | 0 | 650 |
| Jun | 130 | 0 | 780 |
Step 3—Trial Balance With Cushion
Open Table
| Aggregate | |||
|---|---|---|---|
| pmt | disb | bal | |
| Jun | 0 | 0 | 1040 |
| Jul | 130 | 500 | 670 |
| Aug | 130 | 0 | 800 |
| Sep | 130 | 360 | 570 |
| Oct | 130 | 0 | 700 |
| Nov | 130 | 0 | 830 |
| Dec | 130 | 700 | 260 |
| Jan | 130 | 0 | 390 |
| Feb | 130 | 0 | 520 |
| Mar | 130 | 0 | 650 |
| Apr | 130 | 0 | 780 |
| May | 130 | 0 | 910 |
| Jun | 130 | 0 | 1040 |
II. Example Illustrating Single-Item Analysis
Assumptions
Disbursements:
$360 for school taxes disbursed on September 20
$1,200 for county property taxes:
$500 disbursed on July 25
$700 disbursed on December 10
Cushion: One-sixth of estimated annual disbursements
Settlement: May 15
First Payment: July 1
Step 1—Initial Trial Balance
Open Table
| Single-item | ||||||
|---|---|---|---|---|---|---|
| Taxes | School taxes | |||||
| pmt | disb | bal | pmt | disb | bal | |
| June | 0 | 0 | 0 | 0 | 0 | 0 |
| July | 100 | 500 | −400 | 30 | 0 | 30 |
| August | 100 | 0 | −300 | 30 | 0 | 60 |
| September | 100 | 0 | −200 | 30 | 360 | −270 |
| October | 100 | 0 | −100 | 30 | 0 | −240 |
| November | 100 | 0 | 0 | 30 | 0 | −210 |
| December | 100 | 700 | −600 | 30 | 0 | −180 |
| January | 100 | 0 | −500 | 30 | 0 | −150 |
| February | 100 | 0 | −400 | 30 | 0 | −120 |
| March | 100 | 0 | −300 | 30 | 0 | −90 |
| April | 100 | 0 | −200 | 30 | 0 | −60 |
| May | 100 | 0 | −100 | 30 | 0 | −30 |
| June | 100 | 0 | 0 | 30 | 0 | 0 |
Step 2—Adjusted Trial Balance
[Increase monthly balances to eliminate negative balances]
Open Table
| Single-item | ||||||
|---|---|---|---|---|---|---|
| Taxes | School taxes | |||||
| pmt | disb | bal | pmt | disb | bal | |
| Jun | 0 | 0 | 600 | 0 | 0 | 270 |
| Jul | 100 | 500 | 200 | 30 | 0 | 300 |
| Aug | 100 | 0 | 300 | 30 | 0 | 330 |
| Sep | 100 | 0 | 400 | 30 | 360 | 0 |
| Oct | 100 | 0 | 500 | 30 | 0 | 30 |
| Nov | 100 | 0 | 600 | 30 | 0 | 60 |
| Dec | 100 | 700 | 0 | 30 | 0 | 90 |
| Jan | 100 | 0 | 100 | 30 | 0 | 120 |
| Feb | 100 | 0 | 200 | 30 | 0 | 150 |
| Mar | 100 | 0 | 300 | 30 | 0 | 180 |
| Apr | 100 | 0 | 400 | 30 | 0 | 210 |
| May | 100 | 0 | 500 | 30 | 0 | 240 |
| Jun | 100 | 0 | 600 | 30 | 0 | 270 |
Step 3—Trial Balance With Cushion
Open Table
| Single-item | ||||||
|---|---|---|---|---|---|---|
| Taxes | School taxes | |||||
| pmt | disb | bal | pmt | disb | bal | |
| Jun | 0 | 0 | 800 | 0 | 0 | 330 |
| Jul | 100 | 500 | 400 | 30 | 0 | 360 |
| Aug | 100 | 0 | 500 | 30 | 0 | 390 |
| Sep | 100 | 0 | 600 | 30 | 360 | 60 |
| Oct | 100 | 0 | 700 | 30 | 0 | 90 |
| Nov | 100 | 0 | 800 | 30 | 0 | 120 |
| Dec | 100 | 700 | 200 | 30 | 0 | 150 |
| Jan | 100 | 0 | 300 | 30 | 0 | 180 |
| Feb | 100 | 0 | 400 | 30 | 0 | 210 |
| Mar | 100 | 0 | 500 | 30 | 0 | 240 |
| Apr | 100 | 0 | 600 | 30 | 0 | 270 |
| May | 100 | 0 | 700 | 30 | 0 | 300 |
| Jun | 100 | 0 | 800 | 30 | 0 | 330 |
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