ACC 460 Wk 2 – Apply: Exercise 4-7

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ACC 460 Wk 2 - Apply: Exercise 4-7
ACC 460 Wk 2 – Apply: Exercise 4-7
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ACC 460 Wk 2 – Apply: Exercise 4-7

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, $100,000; Taxes Receivable, $200,000; Accounts Payable, $57,500; and Fund Balance, $242,500.

  2. The budget was passed. Estimated revenues amounted to $1,300,000 and appropriations totaled $1,296,000. All expenditures are classified as General Government.

  3. Property taxes were levied in the amount of $950,000. All of the taxes are expected to be collected before February 2021.

  4. Cash receipts totaled $920,000 for property taxes and $315,000 from other revenue.

  5. Contracts were issued for contracted services in the amount of $107,500.

  6. Contracted services were performed relating to $96,000 of the contracts with invoices amounting to $93,000.

  7. Other expenditures amounted to $995,000.

  8. Accounts payable were paid in the amount of $1,140,000.

  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.