The trial balance for the General Fund of the City of Fairfield as of December 31, 2020, is presented here:

Transactions for the year ended December 31, 2021, are summarized as follows: 

1. The City Council adopted a budget for the year with estimated revenue of $735,000 and appropriations of $700,000. 

2. Property taxes in the amount of $590,000 were levied for the current year. It is estimated that $24,000 of the taxes levied will prove to be uncollectible. 

3. Proceeds from the sale of equipment in the amount of $35,000 were received by the General Fund. The equipment was purchased 10 years ago with resources of the General Fund at a cost of $150,000. On the date of purchase, it was estimated that the equipment had a useful life of 15 years. 

4. Licenses and fees in the amount of $110,000 were collected. 

5. The total amount of encumbrances against fund resources for the year was $642,500. 

6. Vouchers in the amount of $455,000 were authorized for payment. This was $15,000 less than the amount originally encumbered for these purchases. 

7. An invoice in the amount of $28,000 was received for goods ordered in 2020. The invoice was approved for payment. 

8. Property taxes in the amount of $570,000 were collected. 

9. Vouchers in the amount of $475,000 were paid. 

10. Fifty thousand dollars was transferred to the General Fund from the Trust Fund. 

11. The City Council authorized the write- off of $30,000 in uncollected property taxes.

Required:

A. Prepare entries in general journal form to record the transactions for the year ended December 31, 2021.

B. Prepare a preclosing trial balance for the General Fund as of December 31, 2021.

Transcribed Image Text:

City of Fairfield The General Fund Adjusted Trial Balance December 31, 2020 Cash Property Tax Receivable Estimated Uncollectible Taxes Due from Trust Fund Vouchers Payable Fund Balance-Assigned (encumbrances) Fund Balance-Unassigned Debit $430,000 45,000 50,000 $525,000 Credit $ 20,000 60,000 30,000 415,000 $525,000