Budget & Fund Balance: The Wayne City Council approved and adopted its budget for 2020. The budget contained the following amounts: Estimated revenues $ 800,000 Appropriations $ 700,000 Estimated other financing uses-interfund transfers out $ 60,000 During the year 2020, the following transactions and events occurred that affected the general fund. Property tax revenue $ 675,000 Interfund transfer out to the debt service fund $ 45,000 Interfund transfer in received by general fund $ 60,000 Expenditures $ 430,000 Encumbrances, balance at 2020 year-end $ 120,000 Required: Complete #1-3 below. 1) Prepare the entry to close the budget. AccountDebitCredit 2) Prepare the closing entry for actual events that occurred during the year. AccountDebitCredit 3) Assume the beginning of the year total Fund Balance was $450,000 (all unassigned) and any encumbrances outstanding at year-end are part of "assigned" fund balance. Complete the Fund Balance breakdown below. Fund Balance: Assigned Unassigned Total

1 ) The entry to close the budget. Particulars Debit Credit Appropriations a/c Estimated other…

Answered: Budget & Fund Balance: The Wayne City…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Budget & Fund Balance: The Wayne City Council approved and adopted its budget for 2020. The budget contained the following amounts:
Estimated revenues		$ 800,000
Appropriations		$ 700,000
Estimated other financing uses-interfund transfers out		$ 60,000

During the year 2020, the following transactions and events occurred that affected the general fund.
Property tax revenue		$ 675,000
Interfund transfer out to the debt service fund		$ 45,000
Interfund transfer in received by general fund		$ 60,000
Expenditures		$ 430,000
Encumbrances, balance at 2020 year-end		$ 120,000

Required: Complete #1-3 below.

1) Prepare the entry to close the budget.
Account	Debit	Credit









2) Prepare the closing entry for actual events that occurred during the year.
Account	Debit	Credit









3) Assume the beginning of the year total Fund Balance was $450,000 (all unassigned) and any encumbrances outstanding at year-end are part of "assigned" fund balance. Complete the Fund Balance breakdown below.


Fund Balance:
Assigned
Unassigned
Total