On January 1, 2020 - A government passes a budget for the General fund with the following: Estimated Property tax $18,000,000; estimated grant revenue of 1,000,000. The GENERAL FUND estimates it will pay salaries of $8,000,000; and estimates it will pay Public Safety Expenses of $6,000,000. The GENERAL FUND budget allowed for a $100,000 worth of supplies to be purchased. The GENERAL FUND uses the encumbrance method and the purchases method. The GENERAL FUND expects 1,000,000 of cash from CPF. The opening balances: Cash 100,000. FB - Committed 100,000  The Capital Projects Fund issued 10,000,000 worth of bonds for 10,000,000 cash and sent the GENERAL FUND 1,000,000. The GENERAL FUND ordered a $100,000 worth of supplies. It received half of the supplies for $50,000. The GENERAL FUND paid for the supplies with cash. The GENERAL FUND used half of the supplies by year-end.  The GENERAL FUND received 2 grants: 1 grant for $800,000 was to be used in 2020 for payment of salaries and the GENERAL FUND received $200,000 more of grant revenue to be used for public safety in 2021. $18,300,000 Property tax bills were sent in December 2019 for 2020 expenditures. $300,000 is deemed uncollectible. $200,000 were received in December 2019. $17,500,000 were received in 2020. The GENERAL FUND estimated that $50,000 would be received in 60 days after year-end; and that the remainder would be received after 60 days after year-end.    The GENERAL FUND paid salaries of $8,100,000 in 2020. The GENERAL FUND paid public Safety of $6,000,000 with cash.    

Requirement:

All journal entries include closing entries. Prepare Balance Sheet and Statement of Revenues Expenditures and Changes in Fund Balance for General Fund only.

Answer rating: 100% (QA)

Answer Journal Entries Date Account Debit Credit Jan 1 Estimated Property Tax 18000000 Estimated Gra... View the full answer