Question

I only need help with letter h but all information is necessary to answer. Thank you!

10.        Following are a number of events relating to the City of Finch (all amounts in $1,000s).

a.   The citizens approve the following budget for the year:

Estimated revenues	$ 69,840
Estimated other financing sources	9,000
Appropriations	(70,130)
Budgetary fund balance	$ 8,710

b.   The City records the following revenues (on account) and other financing sources (paid in cash) during the year:

Revenues—real estate & personal property taxes	$60,890
Revenues—intergovernmental	8,950
Other financing sources—bond proceeds	9,000

c.   The City issuances purchase invoices totaling $62,590 (record the issuance of invoices as a lump sum).

d.   The City recognizes the following expenditures, all on account (these expenditures were previously reserved as budgetary ENCUMBRANCES):

Expenditures—General Government	$15,540
Expenditures—Public Safety	9,280
Expenditures—Education	27,720
Expenditures—Public Works	4,180
Expenditures—Human Services	5,230

e.   The City makes the following payments related to its outstanding debt:

Expenditures—Debt Principal	$1,800
Expenditures—Debt Interest	300

f.    The City collects accounts receivable ($56,580 relating to property taxes and $8,810 relating to intergovernmental receivables) and pays outstanding accounts payable in the amount of $60,520 during the year.

g.   The City recognizes an increase of $820 in deferred revenues as a year-end adjustment to yield a balance in that account of the total property taxes receivable that are not expected to be collected within 60 days.

h.   The City makes the required closing entries to close out the budgetary and operating accounts. In addition, the City closes out the remaining $640 balance of budgetary ENCUMBRANCES outstanding and formally charges that balance to fund balance—unassigned since the outstanding invoices are expected to be honored in the next fiscal year.

Answer 1

City of Finch Journal Enteries Trans. Particulars Estimated Revenues a/c Dr. Estimated Other Financing Sources a/c To Appropriations To Budgetary Fund Balance (To record the budget.) Dr. Debit in $ Credit in $ 69840 9000 70130 8710 9000 60890 8950 Cash a/c Dr. Receivables - real estate & personal property taxes a/c Dr. Receivables - intergovernmental revenues a/c Dr. To Revenues - real estate & personal property taxes To Revenues - intergovernmental To Other financing sources - bond proceeds (Record revenues and other financing sources.) 60890 8950 9000 62590 Encumbrances a/c Dr. To Budgetary Fund Balances - Reserved for Encumbrances (To record the issuance of purchase invoices.) 62590 d. 62590 Budgetary Fund Balances - Reserved for Encumbrances a/c Dr. To Encumbrances (To reverse previous encumbrance journal entry.) 62590 Expenditures - general government a/c Expenditures - public safety a/c Expenditures - education a/c Expenditures - public works a/c Expenditures - human services a/c To Payables (To record expenditures.) 15540 9280 27720 4180 5230 61950 e. 1800 300 Dr. Expenditures - debt principal payments a/c Expenditures - debt interest payments a/c To Cash (To record debt payments.) 2100 4870 60520 Dr. Cash a/c Payables a/c To Receivables - real estate & personal property taxes To Receivables-intergovernmental revenues (To record collection of receivables and payment of payables) 56580 8810 Dr. 820 Revenues a/c To Deferred revenues (To defer revenues) 820

Closing Enteries Trans. Particulars hl. Appropriations a/c Dr. Budgetary Fund Balances a/c Dr. To Estimated Revenues To Estimated Other Financing Sources (To reverse budget entry.) Debit in $ Credit in $ 70130 8710 69840 9000 h2. 60070 8950 9000 Revenues - real estate & personal property taxes a/c Dr. Revenues - intergovernmental a/c Dr. Other financing sources - bond proceeds a/c Dr. To Expenditures - general government To Expenditures - public safety To Expenditures - education To Expenditures - public works To Expenditures - human services To Expenditures - debt principal payments To Expenditures - debt interest payments To Fund Balance - unassigned (To close out revenue and expenditure accounts.) 60890 - 820 = 60070 15540 9280 27720 4180 5230 1800 300 13970 h3 640 Budgetary Fund Balances - Reserved for Encumbrances a/c Dr. To Encumbrances 640 640 640 Fund balance - unassigned a/c Dr. To Fund balance - assigned (To close remaining encumbrances and reserve Fund Balance for encumbrances that lapsed, but are expected to be honored in the following year.)