CH 3- Case Study To enhance control over both revenues and expenditures, a government health care district incorporates its budget in its accounting system and encumbers all commitments. You have been asked to assist the district In making the entries to record the following transactions And to prepare a balance sheet showing the status of year-end asset and fund balance accounts: 1. Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $5,600 (all dollar amounts in this exercise are expressed in thousands) and expenditures of $5,550 were appropriated (authorized). Record the budget using only the control (summary) accounts. 2. During the year, the district engaged in the following transactions. a. It collected $5,800 in fees, grants, taxes, and other revenues. b. It ordered goods and services for $3,000. Except in special circumstances it classifies reserves for encumbrances as "assigned" fund balance. c. During the 1" half of the year it received and paid for $2,800 worth of goods and services that had been previously encumbered. It expects to receive the remaining $200 later the year. d. It incurred $2,500 in other expenditures for goods and services that had not been encumbered. 3. At the last month of the year, the district received the remaining encumbered goods and services. However, the Total cost was only $150, rather than $200 as estimated. Hint: Utilize Horizontal Model to analyze transactions and prepare for the fund statements