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, $93,000; Taxes Receivable, $189,500; Accounts Payable, $52,250; and Fund Balance, $230,250.
2. The budget was passed. Estimated revenues amounted to $1,230,000 and appropriations totaled $1,227,400. All expenditures are classified as General Government.
3. Property taxes were levied in the amount of $915,000. All of the taxes are expected to be collected before February 2021.
4. Cash receipts totaled $885,000 for property taxes and $297,500 from other revenue.
5. Contracts were issued for contracted services in the amount of $95,250.
6. Contracted services were performed relating to $85,500 of the contracts with invoices amounting to $83,900.
7. Other expenditures amounted to $963,500.
8. Accounts payable were paid in the amount of $1,092,500.
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

1. General Journal

No	Account Title and Explanation	Debit	Credit
1	No Journal Entry is Required
2	Estimated Revenue Control	$1,230,000
	Appropriation		$1,227,400
	Budgetary Fund		$2,600
3	Taxes Recivable	$915,000
	Revenue Control		$915,000
4	Cash	$1,182,500
	Taxes Receivable		$885,000
	Revenue Control		$297,500
5	Encumbrance Control	$95,250
	Budgetary Fund		$95,250
6	Budgetary Fund	$85,500
	Encumbrance Control		$85,500
	Expenditure Control	$83,900
	Accounts Payable		$83,900
7	Expenditure Control	$963,500
	Accounts Payable		$963,500
8	Accounts Payable	$1,092,500
	Cash		$1,092,500
9	Appropriation Control	$1,227,400
	Budgetary Fund	$2,600
	Estimated Revenue Control		$1,230,000
	Budgetary Fund -Reserve for Encumbrance	$9,750
	Encumbrance		$9,750
	Revenue Control	$1,212,500
	Expenditure Control ($83,900+$963,500)		$1,047,400
	Fund Balance		$165,100

2. City of Buffalo falls- General Fund Statement of Revenue, Expenditures And Changes in Fund Balance For the Year Ended December 31,2020

Revenue;
Property Taxes	$915,000
Other Revenue	$297,500
Total Revenue		$1,212,500
General Government: Contracted Service	$83,900
Others	$963,500
Total Expenditure		$1,047,400
Access of Revenue Over Expenditure		$165,100
Fund Balance, January 1, 2020		$230,250
Fund Balance, December 31, 2020		$395,350

3. City of Buffalo Falls General Fund As of Dec.31.2020

Assets;
Cash ($93,000+$1,212,500-$1,092,500)		$213,000
Taxes Receivable		$189,500
Total Assets		$402,500
Liabilities and Fund Balance
Accounts Payable ($52,250+$83,900+$963,500-$1,092,500)		$7,150
Fund Balances;
Committed for Contract Service	$9,750
Unasdigned ($395,350-$9,750)	$385,600
Total Fund Balance		$395,350
Total Liabilities and Fund Balance		$402,500