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, $105,000; Taxes Receivable, $207,500; Accounts Payable, $61,250; and Fund Balance, $251,250.
2. The budget was passed. Estimated revenues amounted to $1,350,000 and appropriations totaled $1,345,000. All expenditures are classified as General Government.
3. Property taxes were levied in the amount of $975,000. All of the taxes are expected to be collected before February 2021.
4. Cash receipts totaled $945,000 for property taxes and $327,500 from other revenue.
5. Contracts were issued for contracted services in the amount of $116,250.
6. Contracted services were performed relating to $103,500 of the contracts with invoices amounting to $99,500.
7. Other expenditures amounted to $1,017,500.
8. Accounts payable were paid in the amount of $1,172,000.
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 A

No.	accounts title and explanation	debit	credit
1	estimated revenues control	1350000
	Appropriations control		1345000
	Budgetary fund balance		5000
2	taxes receivable - current	975000
	Revenues control		975000
3	cash	1272500
	Taxes receivable - current		945000
	Revenues control		327500
4	encumbrances control	116250
	Budgetary fund balance - reserve for encumbrances		116250
5	Budgetary fund balance - reserve for encumbrances	103500
	Encumbrances control		103500
6.	expenditures control	99500
	Accounts Payable		99500
7.	expenditures control	1017500
	Accounts Payable		1017500
8.	accounts payable	1172000
	Cash		1172000
9.	Appropriations control	1345000
	Budgetary fund balance	5000
	Estimated revenues control		1350000
10.	Budgetary fund balance - reserve for encumbrances	12750
	Encumbrances (116250-103500)		12750
11.	revenues control (975000+327500)	1302500
	Expenditures control (99500+1017500)		1117000
	Fund balance		185500

Part B

City of Buffalo Falls - general fund Statement of revenues, expenditures and changes in fund balance For the Year Ended December 31 2020
Revenues :
Property taxes		945000
Other revenues		327500
Total revenues		1272500
General government : contracted services	99500
Other	1017500
Total expenditures		1117000
Excess of revenues over expenditures		185500
Fund balance, January 1, 2020		251250
Fund balance, December 31, 2020		436750

Part C

City of Buffalo Falls - general fund Balance sheet As of December 31 2020
Assets
Cash (105000+1272500-1172000)		205500
Taxes receivable (207500+975000-945000)		237500
Total assets		443000
Liabilities and fund balance
Liabilities :
Accounts Payable (61250+99500+1017500-1172000)		6250
Fund balance :
Committed for contract services (116250-103500)		12750
Unassigned (436750-12750)		424000
Total fund balance		436750
Total liabilities and fund balance		440000