Question

The trial balance for the General Fund of the City of Fairfield as of December 31, 2012, is presented here:


Transactions for the year ended December 31, 2013, are summarized as follows:
1. The City Council adopted a budget for the year with estimated revenue of $735,000 and\ appropriations of $700,000.
2. Property taxes in the amount of $590,000 were levied for the current year. It is estimated that $24,000 of the taxes levied will prove to be uncollectible.
3. Proceeds from the sale of equipment in the amount of $35,000 were received by the General Fund. The equipment was purchased 10 years ago with resources of the General Fund at a cost of $150,000. On the date of purchase, it was estimated that the equipment had a useful life of 15 years.
4. Licenses and fees in the amount of $110,000 were collected.
5. The total amount of encumbrances against fund resources for the year was $642,500.
6. Vouchers in the amount of $455,000 were authorized for payment. This was $15,000 less than the amount originally encumbered for these purchases.
7. An invoice in the amount of $28,000 was received for goods ordered in 2012. The invoice was approved for payment.
8. Property taxes in the amount of $570,000 were collected.
9. Vouchers in the amount of $475,000 were paid.
10. Fifty thousand dollars was transferred to the General Fund from the Trust Fund.
11. The City Council authorized the write-off of $30,000 in uncollected property taxes.

Required:
A. Prepare entries in general journal form to record the transactions for the year ended
December 31, 2013.
B. Prepare a pre-closing trial balance for the General Fund as of December 31, 2013.
C. Prepare the necessary closing entries for the year ended December 31, 2013.
D. Prepare a balance sheet and a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31,2013.


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  • CreatedMarch 16, 2015
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