(Complete budgetary cycle)

The city council of Avalon approved the following budget for FY 2004:

In FY 2004, the following transactions took place:
1. Sent out property tax bills for $150,000 at the beginning of the year.
. Collected property taxes of $150,000 during the year.
. Purchased equipment for $60,000.
. Purchased supplies for $34,000.
. Collected fines and penalties of $38,000 and service charges of $7,000 in cash.
6. Paid salaries of $98,000.

Required: Prepare journal entries to set up budgetary accounts, to record these transactions, and to close the budgetary and nonbudgetary accounts.
Do not make entries to record encumbrances.

Transcribed Image Text:

Estimated Revenues Property taxes $150,000 Fines and penalties 40,000 Service charges 10,000 $200,000 Appropriations Salaries $100,000 Supplies 30,000 Equipment 65,000 195,000 Projected Increase in Fund Balance $ 5,000