(Preparing financial statements from a trial balance)

Following is the preclosing trial balance of Ocean City at the end of FY 2004. Assume that at the beginning of the year no encumbrances were outstanding, that the Reserve for supplies on hand amounted to $\$ 4,000$, and that the Unreserved fund balance was $\$ 21,000$.

Required: 1. Prepare closing entries for FY 2004.
2. Prepare a postclosing trial balance for FY 2004.
3. Prepare a balance sheet for FY 2004.
4. Prepare a statement of revenues, expenditures, and changes in fund balance for FY 2004.
5. Prepare a budgetary comparison schedule for FY 2004. Show outstanding encumbrances as expenditures, in order to provide a more meaningful comparison, and prepare a note to this effect on the statement (see Table 5-10). Assume that the originally approved budget and the final budget are identical.

Transcribed Image Text:

Ocean City General Fund Preclosing Trial Balance December 31, 2004 Debits Credits Cash Marketable securities Property taxes receivable $ 22,450 50,000 35,525 Allowance for uncollectible property taxes $ 18,000 Sales taxes receivable Due from state government Supplies on hand 8,500 16,000 7,000 Vouchers payable Due to other funds 12,275 13,400 Interfund loans payable-noncurrent Encumbrances-contractual services Fund balance reserved for supplies on hand Unreserved fund balance 35,000 10,000 7,000 21,000 Budgetary fund balance reserved for encumbrances 10,000 Budgetary fund balance 21,500 Estimated revenues-property taxes 125,000 Estimated revenues-sales taxes 73,000 Estimated revenues-charges for services 14,000 Estimated revenues-fines and forfeits 8,500 Estimated revenues-federal grants 10,000 Estimated transfer in from Enterprise Fund 30,000 (continued)