The Sherwood Park Commissioners approved the following budget for FY 2004 for that governmental unit's General Fund:

Question:

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The park uses the allowance method of handling past-due accounts. An allowance equal to 15 percent of property taxes billed is recorded when the bills are sent. The park's accounting policies include the following:
1. All purchases of supplies and capital equipment are encumbered.
2. Expenditures for salaries and transfers to other funds do not require encumbrances.
3. 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.
4. Separate accounts are maintained for each taxpayer.
5. At the end of each fiscal year, all outstanding property tax receivables are reclassified as delinquent.
6. The park uses the purchases method to record the purchase and use of supplies. An inventory taken at the end of FY 2003 revealed that supplies costing $\$ 5,000$ were still on hand.
The park has four property owners, whose taxes for FY 2004 are

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Encumbrances still outstanding at the end of FY 2003 amounted to $\$ 10,000$ and were for capital equipment.
The postclosing trial balance of the General Fund of Sherwood Park, as of December 31, 2003, was

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During FY 2004, the following transactions occurred:
1. FY 2004 encumbrances for capital equipment were restored.
2. Tax bills amounting to $\$ 100,000$ were sent to FY 2004 property taxpayers. Of the amount billed, $\$ 15,000$ was not expected to be collected.
3. L. John left town suddenly. When he departed, his account was written off.

4. A. Adale paid his FY 2003 property taxes in full, along with a late payment penalty of $\$ 100$.
5. R. Hood and M. Marian paid their property taxes on time and in full.
6. The capital equipment ordered in FY 2003 arrived, along with an invoice for $\$ 10,000$. The invoice was paid immediately.
7. Supplies expected to cost $\$ 40,000$ were ordered.
8. An operating transfer of $\$ 18,000$ was made to the Hyde Park Fund. Of this amount, $\$ 10,000$ was paid in cash. The remainder will be paid in the future.
9. All outstanding FY 2003 vouchers were paid.
10. The federal grant, $\$ 30,000$, was received.
11. Salaries for the year were $\$ 80,000$.
12. Five motorcycles, costing $\$ 8,000$ each, were ordered.
13. One half of the supplies arrived in August, along with an invoice for $\$ 25,000$. The invoice was paid in October.
14. Three of the motorcycles arrived. The actual cost of $\$ 28,000$ was paid immediately.
15. F. Tuck was unable to pay his property taxes. The account was written off.
16. A. Adale paid $\$ 25,000$ of his FY 2004 property taxes. He hopes to pay the remainder next year.
17. Other FY 2004 revenues were $$
\begin{array}{lr}
\text { License fees } & \$ 25,000 \\
\text { Fines and penalties } & 40,000 \end{array}
$$
Sales taxes amounting to $\$ 25,000$ were collected during the year. The park's accountant estimates that another $\$ 5,000$ will be collected in January 2005 and, therefore, is "available."
18. One-fourth of the supplies arrived, along with an invoice for $\$ 9,000$.
19. By the end of 2004 , only $\$ 20,000$ of the federal grant had been spent. The remainder will be spent in the middle of 2005.
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 $\$ 8,000$.
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.