Accounting- Journal Entries

4–5

Prepare journal entries in the General Fund of the Brownville School

District.

a. The District had outstanding encumbrances of $13,000 for band instruments from the previous year. It is the District’s policy to re-establish those encumbrances in the subsequent year.

b. The District ordered textbooks at an estimated cost of $87,000.

c. The band instruments arrived at an invoice price of $12,500 plus $225 shipping.

d. Textbooks originally estimated to cost $77,000 were received with an in voice price of $76,900. The remaining portion of the order is backordered.

e. A contract was signed with a CPA to provide the annual audit in the amount of $11,000.

4-6 as well

4–7. 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.