6). School District #25 formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At year-end, before closing entries, the District had the following balances in its accounts. All accounts had normal balances.

Accounts Payable $ 75

Appropriations 885

Cash 258

Encumbrances 30

Estimated Revenues 900

Expenditures 859

Fund Balance 165

Reserve for Encumbrances 30

Revenues 892

Required: [10 pts.]

a). Prepare the necessary closing entries.

b). Prepare a balance sheet after closing.