Answer:
City of Buffalo Falls
a. Journal Entries:
Beginning balances:
Jan.1, 2020 :
Description Debit Credit
Cash $93,000
Taxes Receivable $189,500
Accounts Payable $52,250
Fund Balance $230,250
To record opening balances of the General Fund.
Transactions during the year:
Description Debit Credit
Taxes Receivable $1,230,000
Estimated Revenue $1,230,000
To record the estimated revenue for the year.
General Government $1,227,400
Accounts Payable $1,227,400
To record the estimated appropriations for the year.
Property taxes receivable $915,000
Other revenue receivable $315,000
Estimated revenue $1,230,000
Cash Account $1,182,500
Property taxes receivable $885,000
Other revenue receivable $297,500
To record the cash receipts.
Contracts $95,250
Accounts Payable $95,250
To record contracts for services.
Debit General Government $963,500
Credit Accounts Payable $963,500
To record the other expenditures.
Debit Accounts Payable $1,092,500
Credit Cash Account $1,092,500
To record payment on account.
b. Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund:
Estimated Revenue $1,230,000
less Expenditure:
Contracts 95,250
Other expenditures 963,500
Change in fund $171,250
Fund balance b/f 230,250
Fund balance c/f $401,500
c. Balance Sheet for the General Fund:
Cash $183,000
Taxes Receivable 237,000
Total assets $420,000
Accounts Payable $18,750
Fund balance 401,500
Total liabilities + Fund $420,250
Step-by-step explanation:
a) Cash Account:
Beginning balance $93,000
Property taxes 885,000
Other revenue 297,500
less Accounts payable 1,092,500
Ending balance $183,000
b) Taxes Receivable
Beginning balance $189,500
Estimated Revenue 1,230,000
less Receipts:
Property taxes 885,000
Other revenue 297,500
Ending balance $237,000
c) Accounts Payable
Beginning balance $52,500
Other expenditure 963,500
Contracts 95,250
Less payments 1,092,500
Ending balance $18,750