Assume that the City of Nablus maintains its books and records in a manner that facilitates preparation of the fund financial statements.. At the beginning of the fiscal year 2014, the City had the following balances in its accounts. All amounts are in thousands. .

Cash $200

Fund Balance 50

Reserve for Encumbrances 150

Jan 1 The City made the appropriate entry to restore the prior year purchase order

( encumbrances).

Jan 1

Its commissioners approved a budget for the current fiscal year. It included total revenues of $860 and the total appropriations of $880.

Feb 2

It ordered office supplies for $20.

Mar 10

It incurred the following costs. Paying in cash.

Repair $40

Rent $25

Mar 12

It ordered equipment costing $9.

Apr 12

It received the equipment and was billed for $10, rather than $9 as anticipated.

Apr 14

It received part of the previously ordered supplies and was billed for the amount of $ 15

May 15

It earned and collected tax and fees revenues of $820, $180..

INSTRUCTIONS:-

a) Prepare the necessary journal entries.

c) On Apr 1, compute the amount of the appropriation available for spending during the remainder of 2014.

d) Prepare the necessary closing entries at December 31.