Question

1.Beginning balances were: Cash, $110,000; Taxes Receivable, $251,000, Accounts payable,$65,000; and Fund Balance, $260,000.

2. The budget was passed, Estimated revenues amounted to $1,400,000 and appropriations totaled $1,394,000. All expenditures are classified as General Government.

3. Property taxes were levied in the amount of $ 1,000,000. All of the taxes are expected to be collected before February 2021.

4. Cash receipts totaled $ 970,000 for property taxes and $ 340,000 from other revenue.

5. Contracts were issued for contracted services in the amount of $125,000.

6. Contracted services were performed relating to $111,000 of the contracts with invoices amounting to $106,000

7. Other expenditures amounted to $1,040,000

8. Accounts payable were paid in the amount of $1,204,000.

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.

Answer 1

Part 1

No.	General journal	Debit	Credit
1	No journal entry required
2	Estimated revenues control	1400000
	Appropriations control		1394000
	Budgetary fund balance		6000
3	Taxes receivable- current	1000000
	Revenues control		1000000
4	Cash	1310000
	Revenues control		340000
	Taxes receivable- current		970000
5	Encumbrances control	125000
	Budgetary fund balance - reserve for encumbrances		125000
6	Budgetary fund balance - reserve for encumbrances	111000
	Encumbrances control		111000
	Expenditures control	106000
	Accounts payable		106000
7	Expenditures control	1040000
	Accounts payable		1040000
8	Accounts payable	1204000
	Cash		1204000
9	Appropriations control	1394000
	Budgetary fund balance	6000
	Estimated revenues control		1400000
	Budgetary fund balance - reserve for encumbrances	14000
	Encumbrances (125000-111000)		14000
	Revenues control (1000000+340000)	1340000
	Expenditures control (1040000+106000)		1146000
	Fund balance		194000

Part 2

General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended December 31
Revenues:
Property Taxes		1000000
Other Revenues		340000
Total Revenues		1340000
Expenditures:
General Government: Contracted Services	1040000
Other	106000
Total Expenditures		1146000
Revenues over (under) expenditures		194000
Fund Balance, January 1		260000
Fund Balance, December 31		$454000

Part 3

Balance Sheet General Fund As of December 31
Assets
Cash		180000
Taxes receivable, net (251000+1000000-970000)		281000
Total assets		461000
Liabilities and Fund Balance Liabilities
Liabilities
Accounts payable (65000+106000+1040000-1204000)		7000
Total Liabilities
Fund Balance:
Committed for Contract Services	14000
Unassigned (454000-14000)	440000
Total Fund Balance		454000
Total Liabilities and Fund Balances		461000