CITY OF MONROE Street and Highway Fund Balance Sheet As of December 31, 2019 Assets Cash Investments Due from state government Total assets Liabilities: $ 19,000 63,000 107,000 $189,000 Liabilities and Fund Equity $ 10,000 Accounts payable Fund equity: Fund balance-assigned for streets and highways Total liabilities and fund equity 179,000 $189,000 3-C. This portion of the continuous problem continues the special revenue fund example by requiring the recording and posting of the budgetary entries. To reduce clerical effort required for the solution use control accounts for the budgetary accounts, revenues, expenditures and encumbrances. Subsidiary accounts are not required. Budget information for the City includes: (1) Also as of January 1, 2020, the City Council approved and the mayor signed a budget for the Street and Highway Fund that provided for estimated revenues from the state government in the amount of $1,068,000 and appropriations of $1,057,000. Record the budget and post to the ledger. 4-C. Part 2. Special Revenue Fund Transactions Required: a. Record journal entries for the following transactions for FY 2020 and post to the general ledger. As there are relatively few revenues and expenditures, the use of control accounts is not necessary. (Make entries directly to individual revenue and expenditure accounts). (2) The state government notified the City that $1,067,500 will be available for street and highway maintenance during 2020 (i.e. the City has met eligibility requirements). The funds are not considered reimbursement-type as defined by GASB standards. (3) Cash in the total amount of $997,000 was received from the state government. (4) Contracts, all eligible for payment from the Street and Highway Fund, were signed in the amount of $1,062,000. (5) Contractual services (see transaction 3) were received; the related contracts amounted to $1,042,000. Invoices amounting to $1,040,500 for these items were approved for payment. The goods and services all were for street and highway maintenance. (6) Investment revenue of $1,900 was earned and received. (7) Accounts payable were paid in the amount of $987,000. (8) All required legal steps were accomplished to increase appropriations in the amount of $4,500. b. Prepare and post the necessary closing entries for the Street and Highway Fund. c. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the Street and Highway Fund for the fiscal year