The following transactions relate to the general fund of the city of buffalo falls for the year ended december 31, 2020: 1. Begining Balances were: Cash, $80,000; Taxes receivable, $185,000; Accounts Payable, $50,000; and Fund Balance, $215,000. 2. The budget was passed. Estimated revenues amount to $1,200,000 and appropriations totaled $1,196,000. All expemditures are classifed as General Government. 3. property taxes were levied in the amount of $902,000. Alll of the taxes are expected to be collected before Febuary 2021. 4. Cash reciepts totaled $870,000 for property taxes and $275,000 from other revenue. 5. contracts were issued for contracted servies in the amount of $90,000. 6. Contracted services were preformed relating to $82,000 of the contracts with invoices ammounting 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 Jounal entries for the above tranactions. b. Prepare a statement of revenues, expenditures, and charges 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.
The following transactions relate to the general fund of the city of buffalo falls for the year ended december 31, 2020:
1. Begining Balances were: Cash, $80,000; Taxes receivable, $185,000; Accounts Payable, $50,000; and Fund Balance, $215,000.
2. The budget was passed. Estimated revenues amount to $1,200,000 and appropriations totaled $1,196,000. All expemditures are classifed as General Government.
3. property taxes were levied in the amount of $902,000. Alll of the taxes are expected to be collected before Febuary 2021.
4. Cash reciepts totaled $870,000 for property taxes and $275,000 from other revenue.
5. contracts were issued for contracted servies in the amount of $90,000.
6. Contracted services were preformed relating to $82,000 of the contracts with invoices ammounting 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 Jounal entries for the above tranactions.
b. Prepare a statement of revenues, expenditures, and charges 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.
Journal entry: Journal is a book of prime entry or a book of original entry in which transactions are first recorded in chronological order. The chronological means that the entry is recorded in the order or sequence they are entered in the books.
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