(Beginning balances, complete set of statements)}
The December 31, 2004, postclosing trial balance of the General Fund of the City of Pompano was as follows:

a. The city council estimated revenues for FY 2004 to be $\$ 1,500$ and expenditures to be $\$ 1,450$.

b. The city's outstanding voucher payable, due to a contractor for remodeling city hall, was paid off in March.

c. Service charges of $\$ 800$ were collected during the year.

d. The Provo Bread Company paid the city $\$ 300$ it owed for repairs to a fire hydrant because of damage done by a runaway delivery truck.

e. Speeding tickets, which resulted in fines of $\$ 500$, were issued to tourists en route to Fun City. The fines were paid in cash.

f. Salaries of $\$ 1,000$ were paid to the mayor and the city clerk. Supplies costing $\$ 125$ were purchased for cash.
g. A used traffic light was purchased from the City of Clarkson for $\$ 150$, to be paid the following year.
Required: 1. Prepare journal entries to record the listed transactions in the General Fund.
2. Post these journal entries to the ledger. (Use T-accounts.)
3. Prepare a preclosing trial balance.
4. Prepare closing entries and post to the ledger.
5. Prepare a postclosing trial balance.
6. Prepare, in good form, a balance sheet and a statement of revenues, expenditures, and changes in fund balance.

Transcribed Image Text:

Debits Credits Cash $500 Accounts receivable 300 Vouchers payable $400 Unreserved fund balance 400 $800 $800