Question

1) Prepare entries to record the following events and transactions for Tulia Township for the year 2016.

                  a.   The Township adopted a budget calling for appropriations of $360,000. The estimated revenues (all property taxes) were $340,000.

                  b.   The Township sent property tax bills amounting to $340,000 to property owners.

                  c.   Property owners paid $335,000 of property taxes to the Township.

                  d.   A purchase order of $25,000 was sent to a vendor of supplies.

                  e.   The supplies ordered in transaction d. were received in good order and the accompanying invoice of $24,000 was approved.

2) Following is the adjusted trial balance for the General Fund of the Township of Florida on June 30, 2016, the end of the fiscal year.

Based on this information, prepare:

            1.   closing entries

            2.   the statement of revenues, expenditures, and changes in fund balance for the year

            2.   the balance sheet at June 30, 2016. (Classify the fund balance as Unassigned.)

Township of Florida General Fund Adjusted Trial Balance June 30, 2016
Cash	$      6,200
Taxes receivable	40,000
Investments	65,000
Vouchers payable		38,750
Tax anticipation notes payable		12,750
Unassigned fund balance		57,000
Estimated revenues	101,000
Appropriations		99,000
Budgetary fund balance		2,000
Revenues-taxes		100,000
Revenues-other		2,080
Expenditures-personal services	94,700
Expenditures-supplies	4,680	0
	$ 311,580	$ 311,580

Answer 1

a. Estimated revenues - property taxes 340,000

Budgetary fund balance 20,000

Appropriations 360,000

b. Property taxes receivable 340,000

Revenues - property taxes 340,000

c. Cash 335,000

Property taxes receivable 335,000

d. Encumbrances 25,000

Budgetary fund balance reserved for encumbrances 25,000

e. Budgetary fund balance reserved for encumbrances 25,000

Encumbrances 25,000

Expenditures - supplies 24,000

Vouchers payable 24,000

a. Closing entries

Appropriations 99,000

Budgetary fund balance 2,000

Estimated revenues 101,000

Revenues-taxes 100,000

Revenues-other 2,080

Expenditures-personal services 94,700

Expenditures-supplies 4,680

Unassigned fund balance 2,700

b. Statement of Revenues, Expenditures, and Changes in Fund Balance

Township of Florida

General Fund

Statement of Revenues, Expenditures, and Changes in Fund Balance

For the year ended June 30, 2016

Revenues

Taxes $100,000

Other 2,080

Total revenues $102,080

Expenditures

Personal services 94,700

Supplies 4,680

Total expenditures 99,380

Excess of revenues over (under) expenditures 2,700

Fund balance, beginning of year 57,000

Fund balance, end of year 59,700

C. Balance Sheet

Township of Florida

General FundBalance SheetAt June 30,2016

Assets

Cash$ 6,200

Taxes receivable 40,000

Investments 65,000

Total assets $ 111,200

Liabilities

Vouchers payable $ 38,750

Tax anticipation notes payable 12,750

Total liabilities 51,500

Fund balance

Unassigned 59,700

Total liabilities and fund balance $ 111,200