The City Council of Bacchus City approved the following budget for FY 2004 for that city's General Fund:

The city's accounting policies include the following:
1. All purchases of supplies and materials and equipment are encumbered.
2. Expenditures for salaries, travel, services and transfers to other funds do not require encumbrances.
3. Expenditures for salaries include fringe benefits paid by the City.
4. Outstanding encumbrances lapse at the end of each fiscal year. Outstanding purchase orders that will be honored the following year, however, are reported on its financial statements.
5. At the end of each fiscal year, all outstanding property tax receivables are reclassified as delinquent.
6. What are shown as operating expenses in the budget in Chapter 3 are broken down into Contractual services and Supplies and materials accounts in this problem.
7. The City uses the purchases method to record the purchase and use of supplies and materials. An inventory taken at the end of FY 2003 revealed that supplies and materials costing $\$ 30,000$ were still on hand.........

\section*{Required:}
1. Prepare budgetary, operating, and closing entries for FY 2004 for the General Fund. Assume that outstanding purchase orders will be honored the following year and that supplies on hand at the end of FY 2004 amount to $\$ 18,000$.
2. Prepare preclosing and postclosing trial balances for FY 2004.
3. Prepare a balance sheet and a statement of revenues, expenditures, and changes in fund balance for FY 2004.
4. Prepare a budgetary comparison schedule for FY 2004.

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Estimated Revenues Property taxes Interest and penalties Sales taxes Fines and penalties Lottery receipts License fees Appropriations and Transfers $5,504,000 38,000 900,000 70,000 225,000 10,000 $6,747,000 Salaries $3,500,000 Travel 31,500 Equipment 600,000 Contractual services 120,000 Supplies and materials 40,000 Liability insurance 16,500 Advertising 600 Legal services 10,000 Audit fees 10,000 Transfer to Debt Service Fund 900,000 Transfer to Venus Park Fund 60,000 Projected Increase in Fund Balance 5,288,600 $1,458,400