(Complete budgetary cycle) :

The board of supervisors of Arabi Township approved the following budget for FY 2004:

The township does not use encumbrances. All expenditures are paid in cash.
Assume that property tax bills totaling $150,000 were sent out at the beginning of the year.
Required: 1. Prepare opening entries.
2. Prepare operating entries.
3. Prepare closing entries.

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Revenues Licenses $10,000 Fines 5,000 Parking 3,000 Parade permits 2,000 Gas royalties 20,000 $40,000 Appropriations Salaries $25,000 Materials 10,000 Equipment 3,000 38,000 Projected Increase in Fund Balance $ 2,000 Actual Revenues Licenses $11,000 Fines 7,000 Parking 3,000 Parade permits 2,500 Gas royalties 19,500 Actual Expenditures Salaries $24,000 Materials 8,000 Equipment 5,000