The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020: Beginning balances were: Cash, $99,000; Taxes Receivable, $198,500; Accounts Payable, $56,750; and Fund Balance, $240,750.The budget was passed. Estimated revenues amounted to $1,290,000 and appropriations totaled $1,286,200. All expenditures are classified as General Government.Property taxes were levied in the amount of $945,000. All of the taxes are expected to be collected before February 2021.Cash receipts totaled $915,000 for property taxes and $312,500 from other revenue.Contracts were issued for contracted services in the amount of $105,750.Contracted services were performed relating to $94,500 of the contracts with invoices amounting to $91,700.Other expenditures amounted to $990,500.Accounts payable were paid in the amount of $1,132,500.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.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:

Beginning balances were: Cash, $99,000; Taxes Receivable, $198,500; Accounts Payable, $56,750; and Fund Balance, $240,750.
The budget was passed. Estimated revenues amounted to $1,290,000 and appropriations totaled $1,286,200. All expenditures are classified as General Government.
Property taxes were levied in the amount of $945,000. All of the taxes are expected to be collected before February 2021.
Cash receipts totaled $915,000 for property taxes and $312,500 from other revenue.
Contracts were issued for contracted services in the amount of $105,750.
Contracted services were performed relating to $94,500 of the contracts with invoices amounting to $91,700.
Other expenditures amounted to $990,500.
Accounts payable were paid in the amount of $1,132,500.
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.

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