(36 POINTS) - The trial balance for the General Fund of the City of Bigfork as of December 31, 2014 is presented below:

CITY OF BIGFORK

The General Fund

Adjusted Trial Balance

December 31, 2014

Transactions for the year ended December 31, 2015 are summarized as follows:

1. The City Council adopted a budget for the year with estimated revenue of $600,000 and appropriations of $500,000. (Journal entry completed by instructor)

2. Property taxes in the amount of $450,000 were levied for the current year. It is estimated that $59,000 of the taxes levied will prove to be uncollectible. (Journal entry completed by instructor)

3. Proceeds from the sale of equipment in the amount of $10,000 were received by the General Fund. The equipment was purchased four years ago with resources of the General Fund at a cost of $200,000. On the date it was purchased, it was estimated that the equipment had a useful life of six years. (Journal entry completed by instructor)

4. Licenses and fees in the amount of $50,000 were collected. (Journal entry completed by instructor)

5. The total amount of encumbrances against fund resources for the year was $475,000. (Journal entry completed by instructor)

6. Vouchers in the amount of $425,000 were authorized for payment. This was $20,000 less than the amount originally encumbered for these purchases. (Journal entry completed by instructor)

7. An invoice in the amount of $26,000 was received for goods ordered in 2014. The invoice was approved for payment. (Journal entry completed by instructor)

8. Property taxes in the amount of $390,000 were collected. (Journal entry completed by instructor)

9. Vouchers in the amount of $350,000 were paid. (Journal entry completed by instructor)

10. Twenty-five thousand dollars was transferred to the General Fund from the H2O Fund. (Journal entry completed by instructor)

11. The City Council authorized the write-off of $10,000 in uncollected property taxes. (Journal entry completed by instructor)

Required:

1st - Prepare the Year Ended 12/31/2015 Income Statement - in this format

2nd Year-End closing entries; in this format

Cash Property Tax Receivable Est. Uncollectible Taxes Due from H20 Fund Voucher Payable Fund Balance Unassigned (Unreserved) Fund Balance Assigned (Reserved for Encumbrance Debit Credit $336,000 $41,000 $20,000 $25,000 $55,000 $299,000 S28,000 $402,000 $402,000 Cash Property Tax Receivable Est. Uncollectible Taxes Due from H20 Fund Voucher Payable Fund Balance Unassigned (Unreserved) Fund Balance Assigned (Reserved for Encumbrance Debit Credit $336,000 $41,000 $20,000 $25,000 $55,000 $299,000 S28,000 $402,000 $402,000