Answered step by step
Verified Expert Solution
Question
1 Approved Answer
17 [4-a-17] Closing Entry Following the instructions in the next paragraph, prepare and post the necessary entries to close the Estimated Revenues and Appropriations accounts
17 | [4-a-17] | Closing Entry Following the instructions in the next paragraph, prepare and post the | |||||
necessary entries to close the Estimated Revenues and Appropriations accounts to | |||||||
Budgetary Fund Balance, and Revenues and Expenditures to Fund BalanceUnassigned. | |||||||
Because the City of Corvallis honors all outstanding encumbrances at year-end, it is not | |||||||
necessary to close Encumbrances to Encumbrances Outstanding at year-end since | |||||||
encumbrances do not affect the General Fund (GF) balance sheet or statement of revenues, | |||||||
expenditures, and changes in fund balances. If, however, you would like to avoid having | |||||||
these accounts appear in the post-closing trial balance, you can opt to close | |||||||
Encumbrances to Encumbrances Outstanding. If the accounts are closed, they would | |||||||
need to be reestablished at the beginning of the next year, although entries are not | |||||||
required in this problem for the next year. | |||||||
To close the temporary accounts (revenues, expenditures, other financing sources | |||||||
& uses and budgetary accounts), you must select "Yes" in the [Closing Entry] column. | |||||||
To determine the closing amounts for these temporary accounts, see the Preclosing TB | |||||||
column of the Trial Balance out to the right of the ledger. | |||||||
At year-end, an analysis by the citys finance department determined the following | |||||||
constraints on resources in the General Fund (GF). Prepare the appropriate journal entry in the | |||||||
General Fund (GF) to reclassify amounts between Fund BalanceUnassigned and the fund | |||||||
balance accounts corresponding to the constraints shown below. (Note: You should | |||||||
consider the beginning of year balances in fund balance accounts in calculating the | |||||||
amounts to be reclassified.) In other words, you need to adjust these fund balances to the | |||||||
balances shown here, using the Fund Balance-Unassigned account for your balancing entry: | |||||||
Account | Amount | ||||||
Fund BalanceRestrictedPublic Safety | $ 13,400 | ||||||
Fund BalanceCommittedPublic Works | 26,400 | ||||||
Fund BalanceAssignedCulture & Recreation | 50,600 | ||||||
See "Reclassification of Fund Balances" section in the textbook on page 137 for an example. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started