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, $109,000; Taxes Receivable, $213,500; Accounts Payable, $64,250; and Fund Balance, $258,250. 2. The budget was passed. Estimated revenues amounted to $1,390,000 and appropriations totaled $1,384,200. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $995,000. All of the taxes are expected to be collected before February 2021 4. Cash receipts totaled $965,000 for property taxes and $337,500 from other revenue. 5. Contracts were issued for contracted services in the amount of $123,250. 6. Contracted services were performed relating to $109,500 of the contracts with involces amounting to $104,700. 7. Other expenditures amounted to $1,035,500. 8. Accounts payable were paid in the amount of $1,202,000. 9. The books were closed. Required: o. 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 Required Required B My

Answer 1

General Journal
Sr. No	Particulars	Debit	Credit
1	Cash A/c Dr	109000
	Tax Receivable A/c Dr	213500
	To Acount Payable		64250
	To General Fund		258250
	(Being opening Balance Brought Forward)
2	There will not be any Accounting entry for Budgets
3	Tax Receivable A/c Dr	30000
	Cash A/c Dr	965000
	To Propert Tax Income Account		995000
	(Being Property tax has been collected and rest Is estimated till feb 21)
4	Cash A/c Dr	337500
	To Other Revenue Account		337500
	(being Other Revenue Income Received)
5	Issuance of Contract will not have any Journal Entry
6	Contract Services A/c Dr	109500
	Other Expenses A/c Dr	1035500
	To Account Payable		1137750
	To cash A/c		7250
	(Being Expenses incurred * See note1 )
7	General Fund A/c Dr	187500
	Contract Services A/c Dr	109500
	Other Expenses A/c Dr	1035500
	To Tax Receivable		995000
	To Other Revenue		337500
	(Being Receipt and expenditure account Closed)
8	General Fund A/c Dr	445750
	Account Payable A/c Dr	1202000
	To Cash		1404250
	to Tax Receivable		243500
	(Being Books Closed)
	Note 1
	Closing Balance of Account Payable(A)	1202000
	Less : Opening Balance of Account Payable(B)	64250
	Net Balance arise during year(A-B)	1137750
	Less : Contract Service	109500
	Less: Other Expense	1035500
	Expense paid in cash	7250

Statement of Revenue & Expenditure
Expenditure	Amount	Revenue	Amount
Contracted Services	109500	Property Tax	995000
Other Expenses	1035500	Other Revenue	337500
Revenue over Expeniture	187500
	1332500		1332500
Balance Sheet
Liability	Amount	Assets	Amount
Fund Balance	445750	Cash	1404250
Accounts Payable	1202000	Tax Receivable	243500
	1647750		1647750