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The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020 1 100 points 1 Beginning balances were: Cosh, 598,000, Toxes Receivable, S197000, Accounts Payable, $56,000, and Fund Balance, $239,000 2
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020 1 100 points 1 Beginning balances were: Cosh, 598,000, Toxes Receivable, S197000, Accounts Payable, $56,000, and Fund Balance, $239,000 2. The budget was passed. Estimated revenues amounted to $1280.000 and appropriations totaled $1276,400. All expenditures are classified as General Government 3 Property taxes were levied in the amount of 940,000 All of the taxes are expected to be collected before February 2021 4. Cash receipts totaled $910,000 for property taxes and $310.000 from other revenue. 5. Contracts were issued for contracted services in the amount of $104,000 6. Contracted services were performed relating to $93,000 of the contracts with invoices amounting to $90,400 7. Other expenditures amounted to $986,000 8. Accounts payable were paid in the amount of S1130,000 9. The books were closed Required: a. Prepare journal entries for the above transactions b. Prepare a Statement of Revenues Expenditures, and Changes in Fund Balance for the General Fund c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation
Expert Solution
Answer :-
(a)
Journal Entries:
Trans. Particulars Debit($) Credit($)
1 No Entry
2 Estimated Revenue Control A/c Dr. 1,280,000
To Appropriation Control 1,276,400
To Budgetary fund balance 3,600
3 Taxes Receivable- Current A/c Dr. 940,000
To Revenues Control 940,000
4 Cash A/c Dr. 1,220,000
To Taxes Receivable -current 910,000
To Revenue Control 310,000
5 Encumbrances Control A/c Dr. 104,000
To Budgetary Fund Balance - Reserve
for encumbrances A/c 104,000
6(i) Budgetary Fund Balance - Reserve
for encumbrances A/c Dr. 93,000
To Encumbrances Control A/c 93,000
6(ii) Expenditure Control A/c Dr. 90,400
To Accounts payable 90,400
7 Expenditure Control A/c Dr. 986,000
To Accounts Payable 986,000
8 Accounts Payable A/c Dr. 1,130,000
To Cash 1,130,000
9(a) Appropriation Control A/c Dr. 1,276,400
Budgetary Fund balance Dr. 3,600
To Estimated Revenues Control 1,280,000
9(b) Budgetary Fund Balance - Reserve
for encumbrances A/c Dr. 11,000
To Encumbrances A/c 11,000
9(c) Revenue Control A/c Dr. 1,250,000
To Expenditure control 1,076,400
To Fund Balance 1,73,600
(b)
Statement of Revenues, Expenditures and Changes in Fund Balance
For the year ended December 31 , 2020
Particulars Amount($)
Revenues:
Property Taxes : 940,000
Other Revenues : 310,000
Total Revenues (A) : 1,250,000
General Government: Contracted
Services = 90,400
Other = 986,000 : 1,076,400
Total Expenditures (B) : 1,076,400
Excess of Revenues over Expenditures : 173,600
(A-B)
Fund Balance 01.01.2020 : 239,000
Fund Balance 31.12.2020 : 412,600
(c)
Balance sheet As at 31.12.2020
Particulars Amount($)
Assets:
Cash : 188,000
Taxes Receivable : 227,000
Total Assets : 415,000
Liability and Fund Balances
Liabilities:
Accounts Payable : 2,400
Fund Balance:
Committed for Contract services : 11,000
Unassigned : 401,600
Total Fund Balance : 412,600
Total liabilities and Fund Balances : 415,000
(2400 + 412,600)
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