1. The following is a trial balance of the General Fund of the city of Lynnville as of December 31, 20X0, after closing entries:

                                                                                                      Dr.                   Cr.   

Cash ........................................................................               K33,600

Taxes Receivable—Delinquent ..............................               25,400

Allowance for Uncollectible Taxes—Delinquent ...                                      K 5,900

Accounts Receivable ..............................................               15,500

Allowance for Uncollectible Accounts ..................                                          2,500

Vouchers Payable ...................................................                                       42,000

Fund Balance ..........................................................                                       24,100

                                                                                                K74,500           K74,500

(Because interest and penalties on taxes are not material, they are not accrued.)

The following transactions took place during 20X1:

R. Reestablish the encumbrances carried over from 20X0, K16,000.

1. The budget for the year was adopted. Revenues were estimated at K216,000; appropriations of K229,000 were made, including an appropriation of K16,000 for materials ordered in 20X0.
2. Delinquent taxes of K2,800 were declared uncollectible and written off.
3. Property taxes of K210,000 were levied; a 3% allowance for estimated losses was provided.
4. Uniforms estimated to cost K15,000 were ordered, as was a snowplow estimated to cost K3,500.
5. The materials ordered in 20X0 and set up as an encumbrance of that year for K16,000 was received; the actual cost, K15,000, was vouchered for later payment.
6. Collections were made as follows:

Current Taxes .....................................    K182,000

Delinquent Taxes ...............................          8,500

Interest and Penalties on Taxes ..........             200

Accounts Receivable .........................           7,300

    Total                                                    K198,000

7. Received a bill for K3,000 from the city central printing shop.
8. Payroll vouchers for K100,000 were approved and paid, as was a transfer of K38,000 to a Debt Service Fund to cover serial bond debt service.
9. The uniforms and snowplow (ordered in 4) were received; the invoices were for K16,000 and K3,800, respectively.
10. Delinquent taxes of K350, written off in preceding years, were collected.
11. Current taxes receivable became delinquent.
12. Paid K200 to a Special Revenue Fund for supplies acquired for General Fund purposes, but originally paid for from (and recorded as expenditures in) a Special Revenue Fund; and paid K60,000 of vouchers payable.
13. An order was placed for equipment estimated to cost K24,000.
14. Miscellaneous revenues of K5,000 were collected, and K5,000 was received from a discontinued Capital Projects Fund.

Requirements;

1. Prepare journal entries.

2. Enter the opening trial balance to T-accounts and Post the journal entries above in (1) to T-accounts. (Hint open T- Accounts for transactions with no already existing accounts)    

3. Prepare preclosing trial balance at December 31, 20X1.

4. Prepare closing the closing entries and Post to the T-accounts.

5. Prepare a post-closing trial balance at December 31, 20X1.

Answer rating: 100% (QA)

1 Journal Entries a R Reestablish the encumbrances carried over from 20X0 Encumbrances 16000 Fund Balance 16000 b Adoption of the budget Estimated Revenues 216000 Appropriations 229000 Fund Balance 13... View the full answer