• Assume that the Effingham County maintains its books and records in a manner that facilitates preparation of the fund financial statements. The county formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At the beginning of the fiscal year, the county had the following balances in its accounts. All amounts are in millions.

REQUIRED: Prepare the necessary entries for the current fiscal year.

Cash $250

Fund balance unassigned $100

Reserve for encumbrances

(committed or assigned) 150

(a) The County board approved a budget with revenues estimated to be $875 and expenditures of $950.

(b) The County ordered supplies at an estimated cost of $70 and equipment at an estimated cost of $65.

(e) The County incurred salaries of $350, repairs of $90, rent $55, and utilities of $60 during the year. The County paid these items in cash.

(f) The County received the equipment at an actual cost of $75.

(g) The County earned and collected, in cash, revenues of $925.