Question

The following is a pre-closing trial balance for the Village of Lake Augusta’s general Fund as of December 31, 2017:

	Debits	Credits
Accounts payable		6,800
Appropriations		160,000
Budgetary fund balance		38,000
Budgetary fund balance: reserve for encumbrances		5,000
Cash	116,500
Deferred revenues: property taxes		3,000
Due to other funds		5,000
Encumbrances	5,000
Estimated other financing sources	8,000
Estimated other financing uses		10,000
Estimated revenues	200,000
Estimated uncollectible taxes		2,000
Expenditures	154,000
Fund balance		54,700
Other financing sources		10,000
Other financing uses	11,000
Revenues		199,000
Tax anticipation notes payable		30,000
Taxes receivable	29,000
Totals	523,500	523,500

1. Prepare the required closing entries.

   Account	Debit	Credit

2. Prepare a balance sheet for the general fund. Assume outstanding encumbrances are assigned; $3,000 of the fund balance is committed; and $20,000 of the fund balance is restricted.

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Answer 1

Closing Entries are as Follows:
ACCOUNT	Dr.	Cr.
Budgetary fund balance: reserve for encumbrances	5000
To Encumbrances		5000
Estimated other financing sources	8000
To Other financing sources		8000
Estimated other financing uses	10000
To Other financing uses		10000
P& L Balance	46000		(Estimated Revenue-Expenditure)
To Appropriation		46000
Appropriation	200000
To Estimated Revenue		200000
Estimated uncollectible taxes	2000
To Appropriations		2000

Balance Sheet as at 31 Dec 2017
Liabilities	Amount	Assets	Amount
Appropriations	8000	Cash	116500
Accounts payable	6800	Taxes receivable	29000
Deferred revenues: property taxes	3000
Due to other funds	5000
Tax anticipation notes payable	30000
Budgetary fund balance	38000
Fund balance	54700
Total	145500	Total	145500