Prepare a balance sheet for the general fund

Reference no: EM131525638

Question: The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2012:

1. Beginning balances were: Cash, $150,000; Taxes Receivable, $200,000; Accounts Payable, $50,000; and Fund Balance, $300,000.

2. The budget was passed. Estimated revenues amounted to $2,000,000 and appropriations totaled $1,980,000. All expenditures are classified as General Government.

3. Property taxes were levied in the amount of $1,200,000. All of the taxes are expected to be collected before February 2013.

4. Cash receipts totaled $1,200,000 for property taxes and $740,000 from other revenue.

5. Contracts were issued for contracted services in the amount of $900,000.

6. Contracted services were performed relating to $765,000 of the contracts with invoices amounting to $759,000.

7. Other expenditures amounted to $950,000.

8. Accounts payable were paid in the amount of $1,700,000.

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.

Reference no: EM131525638

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