Question

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: 1. Beginning balances were: Cash, $98,000; Taxes Receivable, $197,000, Accounts Payable, $56,000, and Fund Balance, $239,000. ues amounted to $1,280,000 and appropriations totaled $1.276.400. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $940,000. All of the taxes are expected to be collected before February 2021. 4. Cash receipts totaled $910,000 for property taxes and $310,000 from other revenue. 5. Contracts were issued for contracted services in the amount of $104,000. 6. Contracted services were performed relating to $93,000 of the contracts with Invoices amounting to $90,400. 7. Other expenditures amounted to $986,000. 8. Accounts payable were pald In the amount of $1,130.000. 9. The books were closed. Required: a. Prepare Journal entries for the above transactions. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund. c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation. Complete this question by entering your answers in the tabs below. Required A Required B Required c

Please complete all of Part B and C and the following parts for part a:

Part A:

4. Cash receipts totaled $910,000 for property taxes and $310,000 from other revenue.

6a. Record the invoices amounting to $90,400 from the contracts.

6b. Record the Contracted services of $93,000 as performed.

9b. Record the transfer of encumbrances control account.

9c. Record the closure of revenues and expenditures to fund balance.

Answer 1

City of Buffalo Falls Requirement a Requirement b Journal Enteries Trans. Particulars Estimated Revenues Control a/c To Appropriations Control To Budgetary Fund Balance Dr. Debit in $ Credit in $ 1280000 1276400 3600 940000 310000 1250000 3 Dr. 940000 Statement of Revenues , Expenditures, and Changes in Fund Balance For the Year ended 31.12.2020 Revenues: Property Taxes Other Revenues Total Revenues General Government:Contracted Services Other Total Expenditures Excess of Revenues over Expenditures Fund Balance, 1.1.2020 Fund Balance, 31.12.2020 Taxes Receivable - Current a/c To Revenues Control 940000 90400 986000 4 1220000 Cash a/c To Taxes Receivable - Current To Revenues Control 910000 310000 1076400 173600 239000 412600 5 104000 Encumbrances Control a/c Control alc Dr. To Budgetary Fund Balances -resereve for encumbrances 104000 Requirement c 93000 Budgetary Fund Balances -resereve for encumbrances a/c Dr. To Encumbrances Control 93000 Balance sheet As at 31.12.2020 Assets Cash Taxes Receivable Total Assets Dr. 90400 188000 Expenditures Control a/c To Accounts Payable 90400 227000 415000 7 Dr. 986000 Expenditures Control a/c To Accounts Payable 986000 Liabilities and Fund Balances Liabilities: Accounts Payable 8 Dr. 1130000 2400 Accounts Payable a/c To Cash 1130000 9 Appropriations Control a/c Dr. Budgetary Fund Balances - a/c Dr. To Estimated Revenues Control 1276400 3600 Fund Balance: Committed for Contract Services Unassigned Total Fund Balance Total Liabilities and Fund Balances 11000 401600 1280000 412600 415000 11000 Budgetary Fund Balances -resereve for encumbrances a/c Dr. To Encumbrances 11000 Dr. 1250000 Revenues Control a/c To Expenditure Control To Fund Balance 1076400 173600