Assume that on July 1, year 6, The town council of the town of X authorized the establishment of a special Revenue Fund- its first such fund- to account for Special Assessment against certain residents of the neighboring village of Y.Because the property tax revenue of the town of X, which among other services financed street cleaning and street light maintenance for residents of the town only, could not be used for such services elsewhere, the town council authorized special assessment to finance comparable services for the requestingresidents of the village ofY. the town council adopted a budget for the special revenue fund for the year ending June 30 year 7, providing for estimated revenues (from the special Assessments) of 800,000 and appropriations for reimbursement to the General fund for expenditures made by that fund for the services provided to the village of Y residents) of 75,000.

Following are additional transactions or events of the town of X special revenue fund for the year ending June 30 year 7.

a. If special Assessments tax totaling 820,000 were levied which are to be paid in full in

Sixty days

b. Cash Receipts from Special Assessment Taxes of 820,000 birr were collected in full.

c. Of the cash receipts, 630,000 was invested in Treasury bills with face amount of

650,000. The treasury bills mature on June 30 year 7 and were redeemed in full on

that date

d. Billings from the town of X General fund, requesting reimbursement of expenditures of that fund, totaled 760,000; of that amount, 620,000 was paid to the General Fund by

June 30, year 7.

e. On June 30, year 7, the town council of the town ofx designated the fund balance

of the Special revenue fund(80,000) for reimbursement of the General Fund during

the year ending June 30, year 8.

Instruction

i.Record the adopted budget

ii.Record special assessments billed

iii. Record collection of special assessment tax in full during the year

iv.Record acquisition of 65,000 face amounts of treasury bills

v.Record receipts of cash for matured U.S treasury bills.

vi.Record billings from general fund for reimbursement of expenditures for street cleaning and street light maintenance for residents of the village of Y

vii.Records payments of general fund during the year.

viii.Designate the entire fund balance for reimbursement of General Fund during the year ending June 30 year 8.

ix.Prepare Closing Entries

x.Prepare Statement of Revenues, Expenditures and Changes in Fund Balance and balance sheet