Reference no: EM133187251

Question - Case: The town of Awassa earmarked part of its property tax levy for general recreation program. The town's general fund will also contribute to the effort. The following transactions occurred in the fund that accounts the program activities during 2012 budget year.

1. The town council adopted the following budget for its specials revenue fund

Estimated revenue Br.57,000

Estimated transfer in GF Br.7,000

Appropriation Br. 60,000

2. Following a state wide revaluation of properties, estimated revenues where increased by Br.5,200 spiraling inflation also lead the council to increase the appropriation by Br.7,000

3. The general fund contributed Br.8,000 cash to the funds activity

4. Projected revenues were accurate and the amounts were received in cash.

5. Expenditures all previously encumbered amounted Br. 59,000. In addition by Br.1,000 encumbered supplies where not received before a year. The expenditures are paid.

6. The budgetary and nominal accounts were closed.

Required -

a. Prepare necessary journal entries including closing entries.

b. Prepare statement of revenue, Expenditure and changes in fund balance.

c. Prepare balance sheet on Sene 30, 2012.