Question

The city of Cherokee Hill adopted its fiscal year 20X8 General Fund budget, using the modified accrual basis of accounting, on January 1, 20X8.
Budgeted revenues were $17 million; budgeted expenditures were $16,500,000.
• August 5, 20X8, the Cherokee Hill city council adopted a motion by Mayor Clyde Fisher to increase the police department appropriation by $200,000. All other budgeted items remained unchanged.
• September 1, the city council revised the estimate of sales tax revenues upward by $60,000.

Required
a. Record the budgetary events in the General Fund general ledger accounts.
b. Close the General Fund accounts (both budgetary and actual events). Assume the actual transaction entries were recorded properly. In addition to the foregoing events, assume the following information:
• Actual revenues for the year totaled $17,300,000.
• Expenditures for the year totaled $16,600,000.
• Transfers to Debt Service Funds totaled $800,000.
• Encumbrances of $80,000 were outstanding at year-end.
c. Assuming a beginning total fund balance of $3,000,000, what is the postclosing, total fund balance to be reported in the GAAP financial statements for the city of Cherokee Hill?



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  • CreatedOctober 25, 2014
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