Question

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2017:

Beginning balances were: Cash, $90,000; Taxes Receivable, $185,000; Accounts Payable, $50,000; and Fund Balance, $225,000.

The budget was passed. Estimated revenues amounted to $1,200,000 and appropriations totaled $1,198,000. All expenditures are classified as General Government.

Property taxes were levied in the amount of $900,000. All of the taxes are expected to be collected before February 2018.

Cash receipts totaled $870,000 for property taxes and $290,000 from other revenue.

Contracts were issued for contracted services in the amount of $90,000.

Contracted services were performed relating to $81,000 of the contracts with invoices amounting to $80,000.

Other expenditures amounted to $950,000.

Accounts payable were paid in the amount of $1,070,000.

The books were closed.

Prepare journal entries for the above transactions. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund. 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

Answer

Journal entries

Date	Particulars	Dr	Cr
1	Estimated revenues Control	1200000
	appropriations Control		1198000
	budgetary fund balance		2000
2	Property taxes Receivable	900000
	revenues Control		900000
3	Cash	1160000
	Property taxes Receivable		870000
	revenues Control		290000
4	Encumbrances control	90000
	budgetary fund balance-Reserve		90000
5	budgetary fund balance-Reserve	81000
	Encumbrances control		81000
6	Expenditures control	80000
	Accounts payable		80000
7	Expenditures control	950000
	Accounts payable		950000
8	Accounts payable	1070000
	Cash		1070000
9	appropriations Control	1198000
	budgetary fund balance	2000
	Estimated revenues Control		1200000
10	budgetary fund balance-Reserve	9000
	Encumbrances control		9000
11	Revenues control	1190000
	Expenditures control		1030000
	Fund balance		160000

Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund

for the year ended december 31,2017

Particulars	Amount	Amount
Revenues:
Property tax	870000
Other revenues	290000
Total		1160000
Expenditures:
Gen.Govt; contracted services	80000
Other	950000
Total		(1030000)
Excess:		130000
Fund balance Jan. 1,2017		225000
Fund balance Ending, Dec.31,2017		355000

Balance sheet:

CITY OF BUFFALO FALLS
General Fund
Balance Sheet
As of December 31, 2017
Assets:
Cash		180,000
Taxes Receivable		185,000
Total Assets		$365,000
Liabilities and Fund Balance
Liabilities:
Accounts Payable		10,000
Fund Balance:
Committed for Contract Services		9,000
Unassigned		346,000
Total Fund Balance		355,000
Total Liabilities and Fund Balances		$365,000