The City of Alexandria, VA finances its operations from revenues collected from property taxes, waste management fees, municipal court fines, and interest on investments. Alexandria maintains only a general fund. Suppose the following information is available for the year ended December 31, 2016: 

1. Following is the general fund trial balance on January 1, 2016:

2. The budget for 2016, adopted by the town board, follows:

3. All property taxes were collected in cash. Waste management costs, all paid in cash, were \($4,290,000.
Court\) costs, all paid in cash, were \($920,000.\)
4. Waste management revenues of \($2,800,000\) were billed during the year. All outstanding waste management bills on January 1, 2016, were collected during 2016. All 2016 billings were paid with the exception of \($320,000,\) which were mailed to customers the last week of the year.
5. Court fines of \($850,000\) were collected in cash. Salaries and operating expenditures, all paid in cash, were \($880,000.\) Investment income of \($450,000\) accumulates in the investments account until the investments mature. No investments matured in 2016. 

6. Miscellaneous expenditures, all paid in cash, were \($160,000.\)
7. Waste management supplies on hand at year-end were \($265,000.\) The town uses the consumption method to report supplies.
Required

a. Prepare 2016 journal entries to record the above events and to close the books for the year.

b. Prepare a statement of revenues, expenditures, and changes in fund balances and the balance sheet for 2016.

Transcribed Image Text:

Investments Cash.. Waste management supplies. Accounts receivable-waste management Fund balance-nonspendable.. Fund balance-unassigned. Total Dr (Cr) $ 5,000,000 2,500,000 515,000 550,000 (515,000) (8,050,000) $ 0