Question

The following account balances, among others, were included in the pre-closing trial balance of the General Fund of the City of Lynchburg on December 31, 2013.
Estimated Revenue............ $630,000
Expenditures ............... 468,000
Encumbrances............... 120,000
Expenditures—2012 .......... 43,000
Reserve for Encumbrances (Note 1) ...... 162,000
Appropriations............... 672,000
Revenue................ 696,000
Reserve for Supplies Inventory (Note 2).... 72,000
Supplies Inventory (Note 2)......... 72,000
Unreserved Fund Balance.......... 24,000
Note 1: The balance in this account was $42,000 on January 1, 2013.
Purchase orders outstanding on December 31, 2013, total $120,000.
Note 2: Supplies on hand on December 31, 2013, amount to $60,000.

Required:
A. What was the balance in the Unreserved Fund Balance account on December 31, 2012?
What was the total Fund Balance on December 31, 2012?
B. Prepare the necessary adjusting and closing entries for the year ended December 31,
2013. Supplies inventory is accounted for using the purchases method.
C. Prepare a schedule to calculate the Unreserved Fund Balance and the total Fund Balance on December 31, 2013.



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  • CreatedMarch 16, 2015
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