The following transactions relate to the General Fund of the City of Buffalo Falls for the year

Question:

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2017:

1. Beginning balances were: Cash, $90,000; Taxes Receivable, $185,000;

Accounts Payable, $50,000; and Fund Balance, $225,000.

2. The budget was passed. Estimated revenues amounted to $1,200,000 and appropriations totaled $1,198,000. All expenditures are classified as General Government.

3. Property taxes were levied in the amount of $900,000. All of the taxes are expected to be collected before February 2018.

4. Cash receipts totaled $870,000 for property taxes and $290,000 from other revenue.

5. Contracts were issued for contracted services in the amount of $90,000.

6. Contracted services were performed relating to $81,000 of the contracts with invoices amounting to $80,000.

7. Other expenditures amounted to $950,000.

8. Accounts payable were paid in the amount of $1,070,000.

9. The books were closed.

Required:

A. Prepare journal entries for the above transactions.

B. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.

C. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...