At the end of the previous year (year 1), a town's General Fund had cash on hand of $1,200, and had an unreserved fund balance of $1,200. The town's policy is to allow appropriations to lapse at year-end. Therefore, outstanding encumbrances are restored at the start of a year. Do a. Prepare the journal entries in the General Fund to record these transactions. b. Post the journal entries to the General Ledger accounts. C. Prepare the Statement of Revenues, Expenditures and Changes in Fund Balance, and the Balance Sheet, for both year 2 and year 3. I 1. The town issues purchase orders for goods and services, $6,000. 2. The town receives (and pays for) goods and services that cost $5,000. The remaining goods and services are expected to be received next year. At the end of the previous year (year 1), a town's General Fund had cash on hand of $1,200, and had an unreserved fund balance of $1,200. The town's policy is to allow appropriations to lapse at year-end. Therefore, outstanding encumbrances are restored at the start of a year. Do a. Prepare the journal entries in the General Fund to record these transactions. b. Post the journal entries to the General Ledger accounts. C. Prepare the Statement of Revenues, Expenditures and Changes in Fund Balance, and the Balance Sheet, for both year 2 and year 3. I 1. The town issues purchase orders for goods and services, $6,000. 2. The town receives (and pays for) goods and services that cost $5,000. The remaining goods and services are expected to be received next year