Adjusting and Closing Entries, Balance Sheet

The preclosing trial balance for the general fund of Graystone County is given below:

	Dr (Cr)
Cash	$1,500,000
Taxes receivable	900,000
Allowance for uncollectible taxes	(400,000)
Supplies	180,000
Estimated revenues	12,000,000
Expenditures	10,675,000
Encumbrances	250,000
Due from other funds	210,000
Accounts payable	(900,000)
Due to other funds	(150,000)
Deferred inflows of resources	(300,000)
Revenues	(12,200,000)
Appropriations	(11,000,000)
Fund balancenonspendable	(180,000)
Fund balanceassigned	(250,000)
Fund balanceunassigned	(335,000)
Total	$0

Additional information:

1. At year-end, $350,000 in uncollected taxes are expected to be collected within 60 days. The remainder are considered uncollectible.

2. A physical count of inventory revealed $190,000 of supplies on hand. The county uses the consumption method.

3. Assigned fund balance consists of outstanding encumbrances at year-end.

4. Deferred inflows are taxes collected in advance of the year they are available to use. At year-end, taxes collected in advance but not available for use until next year total $250,000.

Required

a. Prepare all year-end adjusting and closing entries for Graystone Countys general fund.

Description		Debit	Credit
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
To adjust the allowance balance.
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
To adjust ending supplies balance.
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
To adjust nonspendable fund balance.
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
To adjust deferred inflows.
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
Fund balanceunassigned		Answer	Answer
To close revenues.
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
AnswerAllowance for uncollectible taxesAppropriationsDeferred inflows of resourcesEstimated revenuesExpendituresFund balance-assignedFund balance-nonspendableFund balance-unassignedRevenuesSupplies		Answer	Answer
Encumbrances		Answer	Answer
Fund balanceunassigned		Answer	Answer
To close expenditures and encumbrances.