P5-12 (preparing i) Journal Entriesii) Activity Statementiii) Balance Sheetiv) B
ID: 2461353 • Letter: P
Question
P5-12 (preparing i) Journal Entriesii) Activity Statementiii) Balance Sheetiv) Budgetary Comparison Schedule from a trial balance)
Following is the pre closing trial balance of Prairie City at the end of fiscal 2009. Assume that at the beginning of the year no encumbrances were outstanding, that the reserve for supplies inventory amounted to $4,000, and that the Unreserved fund balance was $21,000.
Prairie City General Fund
Preclosing Trial Balance
December 31, 2009
Debit Credit
Cash - Dr $ 22,450
Marketable securities - Dr 50,000
Property taxes receivable - Dr 35,525
Allowance for uncollectible property taxes - Cr $18,000
Sales taxes receivable - Dr 8,500
Due from state government - Dr 16,000
Supplies inventory- Dr 7,000
Vouchers payable - Cr 12,275
Due to other funds - Cr 13400
Advances from other funds - Cr 35000
Encumbrances-contractual services - Dr 10000
Funds balance reserved for supplies inventory - Cr 7000
Unreserved fund balance - Cr 21000
Budgetary fund balance reserved for encumbrances - Cr 10000
Budgetary fund balance - Cr 21500
Estimated revenues-property taxes - Dr 125000
Estimated revenues-sales taxes - Dr 73000
Estimated revenues-charges for services - Dr 14000
Estimated revenues- fines and forfeits - Dr 8500
Estimated revenues- federal grants - Dr 10000
Estimated transfer in from enterprise fund - Dr 30000
Appropriation-salaries - Cr 107000
Appropriation-contractual services - Cr 27000
Appropriation-materials and supplies - Cr 15000
Appropriation-capital equipment - Cr 70000
Appropriation-transfer out to debt service fund - Cr 20000
Revenues-property taxes - Cr 117500
Revenues-sales taxes - Cr 73600 Revenues- charge of services - Cr 12400
Revenues-fines and forfeits - Cr 8900
Revenues-federal grants - Cr 10000
Transfer in from enterprise fund - Cr 35000
Expenditures-salaries - Dr 105200
Expenditures-contractual services - Dr 15000
Expenditures-materials and supplies - Dr 15300
Expenditures-capital equipment - Dr 69100
Transfer out to debt services fund - Dr 20000
Total : Dr $634,575 Cr$ 634,575
Explanation / Answer
Solution:
i) Journal entries
a. Appropriations – salaries 107,000
Appropriations – contractual services 27,000
Appropriations – materials and supplies 15,000
Appropriations – capital equipment 70,000
Estimated transfer out to Debt Service fund 20,000
Budgetary fund balance 21,500
Estimated revenues – property taxes 125,000
Estimated revenues – Sales taxes 73,000
Estimated revenues – Charges for services 14,000
Estimated revenues – fines and forfeits 8,500
Estimated revenues – federal grants 10,000
Estimated transfer in from Enterprise fund 30,000
(To close budgetary accounts for fiscal 2009)
b. Revenues – property taxes 117,500
Revenues – sales taxes 73,600
Revenues – charges for services 12,400
Revenues – fines and forfeits 8,900
Revenues – federal grants 10,000
Transfer in from Enterprise fund 35,000
Expenditures – salaries 105,200
Expenditures – contractual services 15,000
Expenditures – materials and supplies 15,300
Expenditures – capital equipment 69,100
Unreserved fund balance 32,800
To close revenue and expenditures account for fiscal 2009
c1. Budgetary fund balance reserved for encumbrances 10,000
Encumbrances – contractual services 10,000
To close outstanding encumbrances for fiscal 2009
c2. Unreserved fund balance 10,000
Fund balance reserve for encumbrances 10,000
To record reservation of fund balances for open encumbrances.
ii) Activity Statement
iii) Balance Sheet
Prairie City General fund Statement of revenues, expenditures And changes in fund balance Fiscal year ended December 31, 2009 Revenues: Property taxes $117,500 Sales taxes 73,600 Charges for services 12,400 Fines and forfeits 8,900 Federal grants 10,000 $222,400 Expenditures: Salaries $105,200 Contractual Services 15,000 Materials and supplies 15,300 Capital equipment 69,100 204,600 Excess (deficiency) of revenues over expenditures $17,800 Other financing sources (uses) Transfer in from Enterprise fund $35,000 Transfer out to Debt service fund -20,000 15,000 Net change in fund balances before inventory $32,800 Total fund balance at beginning of year 25,000 Increase in reserve for supplies on hand 3,000 Total fund balance at end of year $60,800Related Questions
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