# Question

On July 1, 2018, the beginning of its fiscal year, the trial balance of the general fund of the city of Wentworth was as follows:
The following events occurred:
a. The budget shows estimated general fund revenues of \$400,000 and estimated expenditures (including \$16,000 encumbered in the prior year) of \$362,000.
b. In July, the item ordered in the previous year was received at an invoice cost of \$16,400. A voucher is prepared.
c. Property taxes amounting to \$300,000 were levied, with 4% estimated to be uncollectible.
d. Cash collections during the year were as follows:
Current taxes . . . . .. . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . \$250,000
Delinquent taxes (in full settlement) . . . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . . . 84,000
Interest and penalties on last year’s taxes (in full settlement). . . . . . . .. . . . . . . . . . 7,600
Due from other funds . . . . . .. . . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . .. . . . 14,000
Total. . .. . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . \$355,600
The controller wishes variations in estimates to be recorded in the appropriate revenue or expenditure account.
e. Purchase orders totaling \$276,000 were placed. Later, invoices for \$260,000 were received and vouchered; supplies inventory purchases were \$16,000 of the total. The purchase covered \$254,000 of the encumbrances.
f. Payrolls of \$50,000 were paid. (Ignore payroll taxes and other deductions.) In addition, vouchers totaling \$280,000 were paid.
g. An automobile was purchased for the fire department. It cost \$16,000 and was not previously encumbered. The invoice is vouchered.
h. At year-end, \$6,000 in supplies was on hand. There were no supplies on hand a year ago.
The city wishes to show the inventory and to establish a proper fund balance designation.
1. Prepare journal entries that would be made in the general fund for the above events.
2. Prepare closing entries.
3. Prepare a statement of revenues, expenditures, and changes in fund balance.

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