The July 1, 2019 balance sheet for the general fund of the Town of Hiller, Texas is:

Transactions for the town during fiscal 2020 were (in thousands):

1. The town council approved a budget estimating revenues of $50,000 in property taxes and $15,000 in fees and service charges. The budget authorized expenditures of $68,000.

2. Property taxes were accrued. Uncollectible taxes are considered negligible.

3. Taxes of $4,950 were collected from last year, and $46,000 of this year’s taxes were collected. Uncollected taxes from last year were written off. The remaining uncollected taxes from this year are expected to be collected within 60 days of fiscal year-end.

4. Expenditures were $66,500, and purchase orders of $1,000 were outstanding at fiscal year-end.

5. Bills of $67,000 were paid in cash.

6. Fees and service charges of $13,500 were collected in cash.

Required

a. Prepare the journal entries to record the budget and transactions for fiscal 2020.

b. Prepare closing entries for fiscal 2020.

c. Compute the unassigned fund balance on June 30, 2020.

d. Prepare a budgetary comparison schedule for fiscal 2020. Use the GAAP budgetary basis.

e. Prepare the general fund balance sheet on June 30, 2020.
 

Transcribed Image Text:

(in thousands) Cash..... Taxes receivable. Total assets TOWN OF HILLER General Fund Balance Sheet July 1, 2019 $60,000 5,000 $65,000 Accounts payable..... Fund balance-unassigned. Total liabilities and fund balance ... $ 6,000 59,000 $65,000 (in thousands) Cash..... Taxes receivable. Total assets TOWN OF HILLER General Fund Balance Sheet July 1, 2019 $60,000 5,000 $65,000 Accounts payable..... Fund balance-unassigned. Total liabilities and fund balance ... $ 6,000 59,000 $65,000

Answer rating: 100% (QA)

a Journal Entries Date 1 2 3 4 5 6 Estimated revenues Fund balanceunassigned Appropriat... View the full answer