On July 1, the start of its fiscal year, Lavaca County reported the following balances ($...

On July 1, the start of its fiscal year, Lavaca County reported the following balances ($ in thousands):

Fund balance:

Committed for encumbrances $400

Unassigned $800

Total fund balance $1,300

During the year, the county ($ in thousands):

• Estimated that revenues for the year would be $13,400

• Appropriated $13,000 for operations.

• Ordered supplies estimated to cost $12,000. Of these, the county received (and paid) supplies that it had estimated would cost $11,300. Actual cost, however, was $11,800.

• Received (and paid) all goods that it had ordered in the previous year. Actual cost was only $380.

• Recognized actual revenues of $13,700 (cash received).

REQUIREMENT：

（1）Record all journal entries including the closing entries.

（2）Show how the total fund balance (including the unassigned and committed portions) would be displayed at year-end.

Solutions

Expert Solution

Answer:

Kindly see explanation for the answers and summary of answers with files attached.

Step-by-step explanation

This is the required journal entries . For the purchases, since it did not show what entry was made, I just answered the normal entry made as if it was purchased and paid in cash.

JOURNAL ENTRIES
Office Supplies	12000
Accounts Payable		12000

Accounts Payable	11300
Cash		11300

Accounts Payable	500
Cash ($11,800 - $11,300)		500
(To record deficit of actual amount)

Accounts Payable ($12,000 - $11,800)	200
Office Supplies		200
(To record excess of estimate on original journal entries made)

Purchase	380
Cash		380

Cash	13700
Revenue		13700

For closing entries,

since the question did not include whether there were unused office supplies, it need not be made another adjusting and closing entries: but this is usually closed at the end of the year.

Closing entries are made to temporary accounts--EXPENSES and REVENUE and are closed to Income Summary account to bring their balances to zero.

CLOSING ENTRIES
Revenue	13700
Income Summary		13700

Income Summary	380
Purchases		380

And lastly, for the Fund Balance at year end, (see attached files) you need to deduct the appropriations and add it to committed fund because it is now a committed fund, and not an unassigned one.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

On July 1, the start of its fiscal year, Victoria County reported the following balances ($...

On July 1, the start of its fiscal year, Victoria County reported the following balances ($ in thousands): Fund balance: Committed for encumbrances $500 Unassigned 900 Total fund balance $1,400 During the year, the county ($ in thousands): • Estimated that revenues for the year would be $13,500. • Appropriated $14,000 for operations. • Ordered supplies estimated to cost $13,000. Of these, the county received (and paid) supplies that it had estimated would cost $11,500. Actual cost, however, was $11,900....

On July 1, 2017, the beginning of its fiscal year, Ridgedale County recorded gross property tax...

On July 1, 2017, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $3,700,000. The county estimated that 4 percent of the taxes levied would be uncollectible. As of April 30, 2018, the due date for all property taxes, the county had collected $3,425,000 in taxes. The county imposed penalties and interest in the amount of $14,000, but only expects to collect $12,550 of that amount. At the end of the fiscal year (June 30,...

Closing Entries On July 31, the close of the fiscal year, the balances of the accounts...

Closing Entries On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows: Accumulated Depreciation—Building $365,000 Inventory $115,000 Administrative Expenses 440,000 Notes Payable 100,000 Building 810,000 Retained Earnings 455,000 Cash 78,000 Sales 1,437,000 Common Stock 75,000 Sales Tax Payable 4,500 Cost of Goods Sold 775,000 Selling Expenses 160,000 Dividends 15,000 Store Supplies 16,000 Interest Expense 6,000...

On July 1, 2019, the first day of its 2020 fiscal year, the Town of Bear...

On July 1, 2019, the first day of its 2020 fiscal year, the Town of Bear Creek issued at par $4,200,000 of 8 percent term bonds to renovate a historic wing of its main administrative building. The bonds mature in five years on July 1, 2024. Interest is payable semiannually on January 1 and July 1. As illustrated in the table below, a sinking fund is to be established with equal semiannual additions made on June 30 and December 31....

On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin...

On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issued at par $4,200,000 of 8 percent term bonds to construct a new city office building. The bonds mature in five years on July 1, 2021. Interest is payable semiannually on January 1 and July 1. A sinking fund is to be established with equal semiannual additions made on June 30 and December 31, with the first addition to be made on December 31,...

On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin...

On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issued at par $2,000,000 of 6 percent term bonds to construct a new city office building. The bonds mature in five years on July 1, 2021. Interest is payable semiannually on January 1 and July 1. A sinking fund is to be established with equal semiannual additions made on June 30 and December 31, with the first addition to be made on December 31,...

1.A county uses the legal budgetary basis to report encumbrances. Information for its latest fiscal year...

1.A county uses the legal budgetary basis to report encumbrances. Information for its latest fiscal year is as follows: Encumbrances outstanding at the beginning of the year $50,000 Encumbrances outstanding at the end of the year 75,000 Excess of revenues and other financing sources over expenditures and other financing uses, legal budgetary basis 860,000 What is the excess of revenues and other financing sources over expenditures and other financing uses, using the GAAP budgetary basis? A.$810,000 B.$835,000 C.$885,000 D.$935,000 2.A...

Henderson Corporation’s trial balance for July 31, the end of its fiscal year, included the following...

Henderson Corporation’s trial balance for July 31, the end of its fiscal year, included the following accounts Accounts Receivable $21,000P Inventories 57,000 Copyright 18,000 Prepaid insurance 6,000 Note receivable, due in two years 74,000 Cash in Bank 4,500 Investments are Treasury Bills that were purchased in May and mature on August 15. Prepaid Insurance is a three-year policy that was purchased on July 31. The amount that should e classified as current assets in the July 31 balance...

Wingfoot Co. began operations on July 1, 2019. By the end of its first fiscal year,...

Wingfoot Co. began operations on July 1, 2019. By the end of its first fiscal year, ended June 30, 2020, Wingfoot had sold 10,000 wingers. Selected data on operations for the year ended June 30, 2020, follow. (Any balance sheet figures are as at June 30, 2020.) Selling price $100 Wingers produced 18,000 Ending work in process 0 Total manufacturing overhead $15,000 Wage rate $8 per hour Machine hours used 9,000 Wages payable $20,000 Direct materials costs $10 per kilogram...

Tamarisk Merchants reported the following on its income statement for the fiscal year ended December 31,...

Tamarisk Merchants reported the following on its income statement for the fiscal year ended December 31, 2021 and 2020. 2021 2020 Sales $495,160 $475,490 Cost of goods sold Beginning inventory 145,780 154,124 Net purchases 346,090 322,660 Ending inventory (138,874) (145,780) Cost of goods sold 352,996 331,004 Gross profit 142,164 144,486 Operating expenses 87,568 89,168 Profit $54,596 $55,318 Calculate the inventory turnover ratio for Tamarisk for 2021 and 2020. (Round answers to 2 decimal places, e.g. 52.75.) Calculate the days sales...

Subjects