Chapter 4 Recording Operating Transactions Affecting the General Fund and Governmental Activities at the Government-wide Level 3. [Para. 4a-3] Purchase orders, contracts, and other commitment documents were issued in the following amounts for the following functions: Presented below are a number of transactions for the City of Bingham that occurred during the 2023 fiscal year, the year for which the budget given in Chapter 3 was recorded. Read all instructions carefully. General Government Public Safety Public Works Health and Welfare Culture and Recreation Miscellaneous Total $ 395,000 1,055,000 980.750 665,725 625,125 98,000 $3.819.600 a. After opening the data file containing your data from Chapters 2 and 3 of this project, record the following transactions in the general journal for the General Fund and, if applicable, in the general journal for governmental activities at the government-wide level. For all entries, the date selected should be year 2023. For each of the paragraphs that requires entries in both the General Fund and governmental activities journals, you can either record them in both journals on a paragraph-by-paragraph basis or alternatively, record all the General Fund journal entries first for all paragraphs, then complete the governmental activities journal entries for all paragraphs. If you choose the latter method, it might be useful to print the General Fund general journal entries to assist in making the entries in the governmental activities journal. Regardless of the method you choose, we recommend that you refer to the illustrative journal entries in Chapter 4 of the Reck, Lowensohn, and Neely, Accounting for Governmental and Nonprofit Entities, 19th edition textbook (hereafter referred to as "the textbook.") Required: Record the encumbrances in the General Fund general journal and Detail Journal as appropriate. In the Detail Journal, select "Purchase Orders" from the drop down [Description] menu. 4. [Para. 4a-4] Grant funds of $25,000 recorded as Deferred Inflows of Resources at the end of FY 2022 were recognized as revenue when timing requirements were met. Required: Record the revenue in both the General Fund and governmental activities general journals by debiting Deferred Inflows of Resources and crediting Revenue. Select "Previous Deferral" in the drop down [Description] menu in the Detail Journal. (This amount was included in the budget as Intergovernmental Revenue in the General Fund.) At the government-wide level the grant funds should be classified as Program Revenues-Health and Welfare-Operating Grants and Contributions. For each entry affecting budgetary accounts or operating statement accounts, the Detail Journal will automatically open to allow you to record the appropriate amounts in the detail budgetary or actual accounts, as was the case in Chapter 3. 1. [Para. 4a-1] Property taxes were levied in the amount of $7,750,000. It is estimated that 1 percent of the tax will be uncollectible. 5. [Para. 4a-5] The General Fund paid $245,654 on the vouchers payable that were outstanding at the end of FY 2022. Required: Record the payment of this amount in both the General Fund and governmental activities general journals. Required: Record this transaction in both the General Fund and governmental activities journal. Record the tax levy as a revenue in both journals; you will adjust for unavailable revenues at year end. Type 4a-1 as the paragraph number in the [Add description] box for this entry: 4a-2 for the next transaction, etc. Careful referencing by paragraph number is very helpful should you need to determine where you may have omitted a required journal entry or made an error. Select "Accrued Revenue in the drop down [Description] menu in the Detail Journal related to the General Fund entry. 6. [Para. 4a-6] The General Fund collected the following receivable amounts in cash: 2. [Para. 4a-2] Tax anticipation notes were issued in the amount of $500,000. Current year Property Taxes Delinquent Taxes Interest and Penalties Receivable on Taxes Sales Taxes Total $7,302,000 378,000 22,860 768,000 $8.470.860 Required: Record the issuance of this note in both the General Fund and governmental activities general journals. Required: Record the receipt of cash and the related credits to receivables and revenues accounts, as applicable, in both the General Fund and governmental activities journals. Select Received in Cash in the drop down [Description] menu in the Detail Journal related to the General Fund revenue entries. Sales taxes exceeding the sales taxes receivable balance should be recorded revenues. In addition to the cash collection, remember to recognize revenue in the General Fund for the delinquent taxes and interest and penalties collected by reducing the deferred inflows of resources balance. These revenues were not expected to be collected within 60 days of year end, thus they were not considered "available" under the modified accrual basis of accounting and were classified as Deferred Inflows of Resources in the General Fund. Select Previous Deferral" in the drop down [Description] menu in the Detail Journal. 7. [Para. 4a-7] The General Fund collected the following amounts in cash: Licenses and Permits 479,000 Fines and Forfeits 519,000 Intergovernmental Revenues 520,500 Charges for Services 385,750 Miscellaneous Revenues 220,500 Total $2.124,750 Required: Record the receipt of cash and additions to revenues accounts, as applicable, in both the General Fund and governmental activities journals. Select "Received in Cash" in the drop down [Description] menu in the Detail Journal related to the General Fund revenue entries. For governmental activities at the government-wide level, all Licenses and Permits and Charges for Services were attributable to the General Government function as Program Revenue-Charges for Services. Fines and forfeits were collected by General Government departments in the amount of $200,000 and by Public Safety departments in the amount of $319,000. Intergovernmental Revenues should be credited to "Program RevenuesGeneral Government Operating Grants and Contributions." 8. [Para. 4a-8] The General Fund paid the $19,400 reported as Due to Other Funds at the end of FY 2022. This amount was reported as Internal Payables to Business-type Activities at the government-wide level. Do not record this transaction in the Water Utility Fund until instructed to do so in Chapter 7 of this case. Required: Record the payment of this amount in both the General Fund and governmental activities general journals. 9. [Para. 4a-9] Delinquent taxes receivable in the amount of $18,000 were written off as uncollectible. Interest and penalties accrued on these taxes in the amount of $1,350 were also written off. Required: Record the writsofis in both the General Fund and governmental activities general journals. 10. [Para. 4a-10] General Fund payrolls for the year totaled $6.673,038. Of that amount. $1,020,975 was withheld for employees' federal income taxes: $1,134,416 for federal payroll taxes; $381,760 for employees' state income taxes: $420,296 for retirement funds administered by the state government; and the remaining $3,715,591 was paid to employees in cash. The City of Bingham does not record encumbrances for payrolls. The payrolls were chargeable against the following functions' appropriations: General Government Public Safety Public Works Health and Welfare Culture and Recreation Total $ 2,200,376 2,731,644 790,481 501,673 448,864 $ 6,673,038 Required: Make summary journal entries for payroll in both the General Fund and governmental activities general journals for the year. 11. [Para. 4a-11] Invoices for some of the goods and services ordered in transaction 4a-3 were received and vouchered for later payment. Select Elimination" in the drop down [Description] menu in the Detail Journal: General Government Public Safety Public Works Health and Welfare Culture and Recreation Miscellaneous Totals Actual Estimated $ 394,940 $ 393,060 1,047,650 1,049,500 964,300 965,620 661,200 663,600 615,750 617,000 98,000 98.000 $3.781,840 $3,786,780 Required: Record the receipt of these goods and the related vouchers payable in both the General Fund and governmental activities journals. At the government-wide level, you should assume the city uses the purchases inventory method. Thus, the invoiced amounts above should be recorded as expenses of the appropriate functions, except for $125,000 of playground equipment ordered by Culture and Recreation and $400,000 worth of vehicles for Public Safety. The equipment and vehicles meet the city's threshold for capitalization (debit Equipment for these items at the government-wide level). Record expenditures charged to the miscellaneous appropriation as General Government expenses at the government-wide level. 12. [Para. 4a-12] The General Fund paid vouchers during the year in the amount of $3,515,000 as well as its liabilities for employees' federal and state income taxes withheld and payroll taxes. Required: Record the payment of these items in both the General Fund and governmental activities general journals. 13. [Para. 4a-13] The General Fund transferred $75,000 to the debt service fund for a bond interest payment. Required: Record this transaction in the General Fund only. The transaction has no effect at the government-wide level since it occurs between two governmental activities. Do not record this transaction in the debt service fund until instructed to do so in Chapter 6 of this case. 14. [Para. 4a-14] Tax anticipation notes issued by the General Fund were paid at maturity at the face amount plus interest of $10,000. Required: Record the payment of these items in both the General Fund and governmental activities general journals. For the General Fund charge Miscellaneous for the interest expenditure. At the government-wide level, debit ExpensesInterest on Tax Anticipation Notes 15. [Para. 4a-15] The General Fund recorded liabilities of $35,000 to other funds for services received from the Water Utility Fund during the year. Of this amount, $23,500 should be charged to Public Safety and $11,500 to General Government. Required: Record the receipt of these services and the associated liability in the General Fund and governmental activities journals. At the government-wide level the liability should be credited to Internal Payables to Business-type Activities. Do not record these items in the Water Utility Fund until instructed to do so in Chapter 7 of this case. 16. [Para. 4a-16] The year-end balance of supplies inventory is $7,000. Required: Adjust the inventory of supplies account in both the General Fund and governmental activities journals. At the government-wide level expenses in General Government can be reduced by $7,000. In the General Fund, fund balance should be classified as nonspendable. 17. [Para. 4a-17] The balances in the current taxes receivable and related estimated uncollectibles accounts were reclassified as delinquent. Required: Record the reclassification in the General Fund and governmental activities journals. Property tax revenues should be reduced and Deferred Inflows of Resources should be recorded in the General Fund, since these revenues are considered "unavailable" under the modified accrual basis of accounting used in governmental funds. At the government-wide level, the property taxes continue to be included in current year revenue. 18. [Para. 4a-18] Interest and penalties of $59,580 were recorded on delinquent taxes, of which $10.750 was estimated to be uncollectible. Sales taxes receivable of $21,722 were also recorded. Required: Interest and penalties should be recorded as Deferred Inflows of Resources, rather than interest and penalties revenue, in the General Fund. On the other hand, sales taxes are recorded as revenue in the General Fund since they will be collected shortly after year end. At the government-wide level, both the interest and penalties and sales taxes are recorded as current year revenue. 19. [Para. 4a-19] In view of unexpected revenue and expenditure developments the city council revised the budgets for the current year as shown below: Budget Adjustments Estimated Revenues: Property Tax $7,500 increase Licenses and Permits 6,000 decrease Fines and Forfeits 4,000 increase Appropriations: Culture and Recreation Public Works General Government Miscellaneous $3,000 decrease 5.000 decrease 4,000 increase 3,000 increase Required: Record the budget amendments in the General Fund general journal only. Budgetary items do not affect the government-wide accounting records. Select Budget Amendment" in the [Description) field in the Detail Journal. Post all journal entries to the general and subsidiary ledgers: After reviewing all entries for accuracy, including year and paragraph numbers, post all entries to the general ledger accounts and to all subsidiary ledger accounts, by clicking on [Post entries]. Also post all entries in the governmental activities journal. 20. [Closing Entry] Following the instructions in the next paragraph, prepare and post the necessary entries to close the Estimated Revenues. Appropriations, and Estimated Other Financing Uses accounts to Budgetary Fund Balance; and Revenues, Expenditures, and Other Financing Uses to Fund Balance-Unassigned. Because the City of Bingham honors all outstanding encumbrances at year-end, it is not necessary to close Encumbrances to Encumbrances Outstanding at year-end since encumbrances do not affect the General Fund balance sheet or statement of revenues, expenditures, and changes in fund balances. However, if you would like to avoid having these accounts appear in the post-closing trial balance, you can opt to close Encumbrances to Encumbrances Outstanding. If the accounts are closed, they would need to be reestablished at the beginning of the next year, although entries are not required in this problem for the next year. To close the temporary accounts, you must click on the box for [Closing Entry), "Closing Entry" checkbox will appear next to the [Add credit] field. Be sure the checkmark in the box for [Closing Entry) is showing as selected before closing each individual account. Also, with the exception of Estimated Other Financing Uses- Interfund Transfers Out and Other Financing UsesInterfund Transfers Out, you will be sent to the Detail Journal where you must close each individual budgetary or operating statement account. To determine the closing amounts for both General Ledger and subsidiary ledger accounts, you should first print the pre-closing version of these ledgers for year 2023 from the [Reports) menu. At year-end, an analysis by the city's finance department determined the following constraints on resources in the General Fund. Prepare the appropriate journal entry the General Fund to reclassify amounts between Fund Balance-Unassigned and the fund balance accounts corresponding to the constraints shown below. You should consider the beginning of year balances in fund balance accounts in calculating the amounts to be reclassified [Note: File the printouts of all your exported or printed documents and your completed financial statements in your cumulative problem folder until directed by your instructor to submit them, unless your instructor specifies submission of files electronically.] Before closing the City of Bingham it is recommended that you save a backup copy of your work to another location by clicking on [File] and [Save As] for Windows and Mac. Click on "Export my Project if you are using the Chromebook version. Account Fund Balance CommittedPublic Safety Fund Balance CommittedPublic Works Fund Balance-Assigned Health and Welfare Fund Balance -NonspendableInventory of Supplies Amount $20,300 13,790 19,500 7,000 Note: DO NOT PREPARE CLOSING ENTRIES FOR GOVERNMENTAL ACTIVITIES AT THIS TIME since governmental activities will not be closed until Chapter 9, after the capital projects fund (Chapter 5) and debt service fund (Chapter 6) transactions affecting governmental activities at the government-wide level have been recorded b. Select [Export] from the drop down [File] menu to create an Excel or other worksheet of the General Fund post-closing trial balance as of December 31, 2023. Use Excel to prepare in good form a balance sheet for the General Fund as of December 31, 2023. Follow the format shown in Illustration 4-4 of the textbook. c. Select [Export] from the drop down [File) menu to create an Excel worksheet of the General Fund pre-closing subsidiary ledger account balances for the year 2023. Use Excel to prepare in good form a statement of revenues, expenditures, and changes in fund balances for the General Fund for the year ended December 31, 2023. (See Illustration 4- 5 in the textbook for an example format.) d. Refer to the General Fund pre-closing subsidiary ledger account balances found in partc above to prepare in good form a statement of revenues, expenditures, and changes in fund balancesbudget and actual for the General Fund for the year ended December 31, 2023. (See Illustration 4-6 in the textbook for an example format.) Note that the change in inventory balance and accompanying change in nonspendable fund balance (see 4a-16) must be included on this statement. e. Prepare a reconciliation of total expenditures reported in your solution to part c of this problem with the total expenditures and encumbrances reported in your solution to part d of this problem. (See example in Chapter 4 of the textbook which compares Illustrations 4-5 and 4-6.) Chapter 4 Recording Operating Transactions Affecting the General Fund and Governmental Activities at the Government-wide Level 3. [Para. 4a-3] Purchase orders, contracts, and other commitment documents were issued in the following amounts for the following functions: Presented below are a number of transactions for the City of Bingham that occurred during the 2023 fiscal year, the year for which the budget given in Chapter 3 was recorded. Read all instructions carefully. General Government Public Safety Public Works Health and Welfare Culture and Recreation Miscellaneous Total $ 395,000 1,055,000 980.750 665,725 625,125 98,000 $3.819.600 a. After opening the data file containing your data from Chapters 2 and 3 of this project, record the following transactions in the general journal for the General Fund and, if applicable, in the general journal for governmental activities at the government-wide level. For all entries, the date selected should be year 2023. For each of the paragraphs that requires entries in both the General Fund and governmental activities journals, you can either record them in both journals on a paragraph-by-paragraph basis or alternatively, record all the General Fund journal entries first for all paragraphs, then complete the governmental activities journal entries for all paragraphs. If you choose the latter method, it might be useful to print the General Fund general journal entries to assist in making the entries in the governmental activities journal. Regardless of the method you choose, we recommend that you refer to the illustrative journal entries in Chapter 4 of the Reck, Lowensohn, and Neely, Accounting for Governmental and Nonprofit Entities, 19th edition textbook (hereafter referred to as "the textbook.") Required: Record the encumbrances in the General Fund general journal and Detail Journal as appropriate. In the Detail Journal, select "Purchase Orders" from the drop down [Description] menu. 4. [Para. 4a-4] Grant funds of $25,000 recorded as Deferred Inflows of Resources at the end of FY 2022 were recognized as revenue when timing requirements were met. Required: Record the revenue in both the General Fund and governmental activities general journals by debiting Deferred Inflows of Resources and crediting Revenue. Select "Previous Deferral" in the drop down [Description] menu in the Detail Journal. (This amount was included in the budget as Intergovernmental Revenue in the General Fund.) At the government-wide level the grant funds should be classified as Program Revenues-Health and Welfare-Operating Grants and Contributions. For each entry affecting budgetary accounts or operating statement accounts, the Detail Journal will automatically open to allow you to record the appropriate amounts in the detail budgetary or actual accounts, as was the case in Chapter 3. 1. [Para. 4a-1] Property taxes were levied in the amount of $7,750,000. It is estimated that 1 percent of the tax will be uncollectible. 5. [Para. 4a-5] The General Fund paid $245,654 on the vouchers payable that were outstanding at the end of FY 2022. Required: Record the payment of this amount in both the General Fund and governmental activities general journals. Required: Record this transaction in both the General Fund and governmental activities journal. Record the tax levy as a revenue in both journals; you will adjust for unavailable revenues at year end. Type 4a-1 as the paragraph number in the [Add description] box for this entry: 4a-2 for the next transaction, etc. Careful referencing by paragraph number is very helpful should you need to determine where you may have omitted a required journal entry or made an error. Select "Accrued Revenue in the drop down [Description] menu in the Detail Journal related to the General Fund entry. 6. [Para. 4a-6] The General Fund collected the following receivable amounts in cash: 2. [Para. 4a-2] Tax anticipation notes were issued in the amount of $500,000. Current year Property Taxes Delinquent Taxes Interest and Penalties Receivable on Taxes Sales Taxes Total $7,302,000 378,000 22,860 768,000 $8.470.860 Required: Record the issuance of this note in both the General Fund and governmental activities general journals. Required: Record the receipt of cash and the related credits to receivables and revenues accounts, as applicable, in both the General Fund and governmental activities journals. Select Received in Cash in the drop down [Description] menu in the Detail Journal related to the General Fund revenue entries. Sales taxes exceeding the sales taxes receivable balance should be recorded revenues. In addition to the cash collection, remember to recognize revenue in the General Fund for the delinquent taxes and interest and penalties collected by reducing the deferred inflows of resources balance. These revenues were not expected to be collected within 60 days of year end, thus they were not considered "available" under the modified accrual basis of accounting and were classified as Deferred Inflows of Resources in the General Fund. Select Previous Deferral" in the drop down [Description] menu in the Detail Journal. 7. [Para. 4a-7] The General Fund collected the following amounts in cash: Licenses and Permits 479,000 Fines and Forfeits 519,000 Intergovernmental Revenues 520,500 Charges for Services 385,750 Miscellaneous Revenues 220,500 Total $2.124,750 Required: Record the receipt of cash and additions to revenues accounts, as applicable, in both the General Fund and governmental activities journals. Select "Received in Cash" in the drop down [Description] menu in the Detail Journal related to the General Fund revenue entries. For governmental activities at the government-wide level, all Licenses and Permits and Charges for Services were attributable to the General Government function as Program Revenue-Charges for Services. Fines and forfeits were collected by General Government departments in the amount of $200,000 and by Public Safety departments in the amount of $319,000. Intergovernmental Revenues should be credited to "Program RevenuesGeneral Government Operating Grants and Contributions." 8. [Para. 4a-8] The General Fund paid the $19,400 reported as Due to Other Funds at the end of FY 2022. This amount was reported as Internal Payables to Business-type Activities at the government-wide level. Do not record this transaction in the Water Utility Fund until instructed to do so in Chapter 7 of this case. Required: Record the payment of this amount in both the General Fund and governmental activities general journals. 9. [Para. 4a-9] Delinquent taxes receivable in the amount of $18,000 were written off as uncollectible. Interest and penalties accrued on these taxes in the amount of $1,350 were also written off. Required: Record the writsofis in both the General Fund and governmental activities general journals. 10. [Para. 4a-10] General Fund payrolls for the year totaled $6.673,038. Of that amount. $1,020,975 was withheld for employees' federal income taxes: $1,134,416 for federal payroll taxes; $381,760 for employees' state income taxes: $420,296 for retirement funds administered by the state government; and the remaining $3,715,591 was paid to employees in cash. The City of Bingham does not record encumbrances for payrolls. The payrolls were chargeable against the following functions' appropriations: General Government Public Safety Public Works Health and Welfare Culture and Recreation Total $ 2,200,376 2,731,644 790,481 501,673 448,864 $ 6,673,038 Required: Make summary journal entries for payroll in both the General Fund and governmental activities general journals for the year. 11. [Para. 4a-11] Invoices for some of the goods and services ordered in transaction 4a-3 were received and vouchered for later payment. Select Elimination" in the drop down [Description] menu in the Detail Journal: General Government Public Safety Public Works Health and Welfare Culture and Recreation Miscellaneous Totals Actual Estimated $ 394,940 $ 393,060 1,047,650 1,049,500 964,300 965,620 661,200 663,600 615,750 617,000 98,000 98.000 $3.781,840 $3,786,780 Required: Record the receipt of these goods and the related vouchers payable in both the General Fund and governmental activities journals. At the government-wide level, you should assume the city uses the purchases inventory method. Thus, the invoiced amounts above should be recorded as expenses of the appropriate functions, except for $125,000 of playground equipment ordered by Culture and Recreation and $400,000 worth of vehicles for Public Safety. The equipment and vehicles meet the city's threshold for capitalization (debit Equipment for these items at the government-wide level). Record expenditures charged to the miscellaneous appropriation as General Government expenses at the government-wide level. 12. [Para. 4a-12] The General Fund paid vouchers during the year in the amount of $3,515,000 as well as its liabilities for employees' federal and state income taxes withheld and payroll taxes. Required: Record the payment of these items in both the General Fund and governmental activities general journals. 13. [Para. 4a-13] The General Fund transferred $75,000 to the debt service fund for a bond interest payment. Required: Record this transaction in the General Fund only. The transaction has no effect at the government-wide level since it occurs between two governmental activities. Do not record this transaction in the debt service fund until instructed to do so in Chapter 6 of this case. 14. [Para. 4a-14] Tax anticipation notes issued by the General Fund were paid at maturity at the face amount plus interest of $10,000. Required: Record the payment of these items in both the General Fund and governmental activities general journals. For the General Fund charge Miscellaneous for the interest expenditure. At the government-wide level, debit ExpensesInterest on Tax Anticipation Notes 15. [Para. 4a-15] The General Fund recorded liabilities of $35,000 to other funds for services received from the Water Utility Fund during the year. Of this amount, $23,500 should be charged to Public Safety and $11,500 to General Government. Required: Record the receipt of these services and the associated liability in the General Fund and governmental activities journals. At the government-wide level the liability should be credited to Internal Payables to Business-type Activities. Do not record these items in the Water Utility Fund until instructed to do so in Chapter 7 of this case. 16. [Para. 4a-16] The year-end balance of supplies inventory is $7,000. Required: Adjust the inventory of supplies account in both the General Fund and governmental activities journals. At the government-wide level expenses in General Government can be reduced by $7,000. In the General Fund, fund balance should be classified as nonspendable. 17. [Para. 4a-17] The balances in the current taxes receivable and related estimated uncollectibles accounts were reclassified as delinquent. Required: Record the reclassification in the General Fund and governmental activities journals. Property tax revenues should be reduced and Deferred Inflows of Resources should be recorded in the General Fund, since these revenues are considered "unavailable" under the modified accrual basis of accounting used in governmental funds. At the government-wide level, the property taxes continue to be included in current year revenue. 18. [Para. 4a-18] Interest and penalties of $59,580 were recorded on delinquent taxes, of which $10.750 was estimated to be uncollectible. Sales taxes receivable of $21,722 were also recorded. Required: Interest and penalties should be recorded as Deferred Inflows of Resources, rather than interest and penalties revenue, in the General Fund. On the other hand, sales taxes are recorded as revenue in the General Fund since they will be collected shortly after year end. At the government-wide level, both the interest and penalties and sales taxes are recorded as current year revenue. 19. [Para. 4a-19] In view of unexpected revenue and expenditure developments the city council revised the budgets for the current year as shown below: Budget Adjustments Estimated Revenues: Property Tax $7,500 increase Licenses and Permits 6,000 decrease Fines and Forfeits 4,000 increase Appropriations: Culture and Recreation Public Works General Government Miscellaneous $3,000 decrease 5.000 decrease 4,000 increase 3,000 increase Required: Record the budget amendments in the General Fund general journal only. Budgetary items do not affect the government-wide accounting records. Select Budget Amendment" in the [Description) field in the Detail Journal. Post all journal entries to the general and subsidiary ledgers: After reviewing all entries for accuracy, including year and paragraph numbers, post all entries to the general ledger accounts and to all subsidiary ledger accounts, by clicking on [Post entries]. Also post all entries in the governmental activities journal. 20. [Closing Entry] Following the instructions in the next paragraph, prepare and post the necessary entries to close the Estimated Revenues. Appropriations, and Estimated Other Financing Uses accounts to Budgetary Fund Balance; and Revenues, Expenditures, and Other Financing Uses to Fund Balance-Unassigned. Because the City of Bingham honors all outstanding encumbrances at year-end, it is not necessary to close Encumbrances to Encumbrances Outstanding at year-end since encumbrances do not affect the General Fund balance sheet or statement of revenues, expenditures, and changes in fund balances. However, if you would like to avoid having these accounts appear in the post-closing trial balance, you can opt to close Encumbrances to Encumbrances Outstanding. If the accounts are closed, they would need to be reestablished at the beginning of the next year, although entries are not required in this problem for the next year. To close the temporary accounts, you must click on the box for [Closing Entry), "Closing Entry" checkbox will appear next to the [Add credit] field. Be sure the checkmark in the box for [Closing Entry) is showing as selected before closing each individual account. Also, with the exception of Estimated Other Financing Uses- Interfund Transfers Out and Other Financing UsesInterfund Transfers Out, you will be sent to the Detail Journal where you must close each individual budgetary or operating statement account. To determine the closing amounts for both General Ledger and subsidiary ledger accounts, you should first print the pre-closing version of these ledgers for year 2023 from the [Reports) menu. At year-end, an analysis by the city's finance department determined the following constraints on resources in the General Fund. Prepare the appropriate journal entry the General Fund to reclassify amounts between Fund Balance-Unassigned and the fund balance accounts corresponding to the constraints shown below. You should consider the beginning of year balances in fund balance accounts in calculating the amounts to be reclassified [Note: File the printouts of all your exported or printed documents and your completed financial statements in your cumulative problem folder until directed by your instructor to submit them, unless your instructor specifies submission of files electronically.] Before closing the City of Bingham it is recommended that you save a backup copy of your work to another location by clicking on [File] and [Save As] for Windows and Mac. Click on "Export my Project if you are using the Chromebook version. Account Fund Balance CommittedPublic Safety Fund Balance CommittedPublic Works Fund Balance-Assigned Health and Welfare Fund Balance -NonspendableInventory of Supplies Amount $20,300 13,790 19,500 7,000 Note: DO NOT PREPARE CLOSING ENTRIES FOR GOVERNMENTAL ACTIVITIES AT THIS TIME since governmental activities will not be closed until Chapter 9, after the capital projects fund (Chapter 5) and debt service fund (Chapter 6) transactions affecting governmental activities at the government-wide level have been recorded b. Select [Export] from the drop down [File] menu to create an Excel or other worksheet of the General Fund post-closing trial balance as of December 31, 2023. Use Excel to prepare in good form a balance sheet for the General Fund as of December 31, 2023. Follow the format shown in Illustration 4-4 of the textbook. c. Select [Export] from the drop down [File) menu to create an Excel worksheet of the General Fund pre-closing subsidiary ledger account balances for the year 2023. Use Excel to prepare in good form a statement of revenues, expenditures, and changes in fund balances for the General Fund for the year ended December 31, 2023. (See Illustration 4- 5 in the textbook for an example format.) d. Refer to the General Fund pre-closing subsidiary ledger account balances found in partc above to prepare in good form a statement of revenues, expenditures, and changes in fund balancesbudget and actual for the General Fund for the year ended December 31, 2023. (See Illustration 4-6 in the textbook for an example format.) Note that the change in inventory balance and accompanying change in nonspendable fund balance (see 4a-16) must be included on this statement. e. Prepare a reconciliation of total expenditures reported in your solution to part c of this problem with the total expenditures and encumbrances reported in your solution to part d of this problem. (See example in Chapter 4 of the textbook which compares Illustrations 4-5 and 4-6.)