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, \(\$ 104,000\); Taxes Receivable, \(\$ 206,000\); Accounts Payable, \(\$ 60,500\); and Fund Balance. \(\$ 249,500\)

2. The budget was passed. Estimated revenues amounted to \(\$ 1,340,000\) and appropriations totaled \(\$ 1,335,200 .\) All expenditures are classified as General Government.

3. Property taxes were levied in the amount of \(\$ 970,000\). All of the taxes are expected to be collected before February \(2021 .\)

4. Cash receipts totaled \(\$ 940,000\) for property taxes and \(\$ 325,000\) from other revenue.

5. Contracts were issued for contracted services in the amount of \(\$ 114,500\).

6. Contracted services were performed relating to \(\$ 102,000\) of the contracts with invoices amounting to \(\$ 98,200 .\)

7. Other expenditures amounted to \(\$ 1,013,000\).

8. Accounts payable were paid in the amount of \(\$ 1,164,500\).

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