Complete accounting cycle and financial statements The city council of E. Staatsboro approved the following budget for the General Fund for fiscal year 2019. Estimated Revenues Property taxes $335,000 License fees 40,000 Fines and penalties 15,000 Total revenues $390,000 Appropriations Salaries $350,000 Supplies and utilities 30,000 Debt service 3,000 Total appropriations 383,000 Budgeted increase in Pund Balance $7,000 The postclosing trial balance for the fund, as of December 31, 2018, wys as follows: Debits Credits Cash $15,000 Vouchers payable $ 8,000 Fund balance (unassigned) 7,000 $15,000 $15,000 The following transactions and events occurred during FY 2019. 1. Levied property taxes of $335,000 and mailed tax bills to property owners. 2. Borrowed $300,000 on tax anticipation notes at an interest rate of 1 percent per annum. The following transactions and events occurred during FY 2019. 1. Levied property taxes of $335,000 and mailed tax bills to property owners. 2. Borrowed $300,000 on tax anticipation notes at an interest rate of 1 percent per annum 3. Ordered supplies expected to cost $18.000 4. The supplies arrived, along with an invoice for $19,000; the city paid the invoice immediately. 5. Received cash ($383,000) from the following sources: property taxes ($330,000), licenses and fees (538,000), fines and penalties ($15,000). 6. Paid cash for the following purposes: unpaid vouchers at the start of year ($8,000); salaries ($340,000); utility bills ($11,000). 7. Repaid the tax anticipation notes 6 months after date of borrowing with interest. 8. Processed a budgetary interchange, increasing the appropriation for supplies and utilities by $2,000 and reducing the appropriation for salaries by the same amount 9. Will pay salaries for the last few days in December, amounting to $2,000, at the end of the first pay period in January 2020; also, received in early January 2020 a utilities invoice for $1,000 applicable to December 2019 Use the preceding information to do the following: a. Prepare journal entries to record the budget and the listed transactions and events. Description Ref Debit Credit . : . To record budget = To record budget 1 To record property tax levy 2 . To record short-term borrowing 3 e To record encumbrance 4 . To reverse encumbrance. To record expenditure . To record payment of voucher 5 . Revenues-licenses and fees Revenues- fines and penalties To record cash receipts Expenditures salaries Expenditures - Supplies and utilities 6 . 6 Expenditures - salaries Expenditures - Supplies and utilities e To record cash payments. Tax anticipation notes payable 7 To record repayment of TANS 8 e To record budgetary interchange. Expenditures - salaries 9 To record accruals for 2019 expenditures b. Prepare a preclosing trial balance. E. Staatsboro General Fund Pre-closing Trial Balance 12/31/2019 Debit Budgetary accounts: Estimated revenues-property taxes $ Estimated revenues-licenses and fees Estimated revenues fines and penalties Appropriations - salaries Credit $ Credit $ b. Prepare a preclosing trial balance, E. Staatsbere General Fund Pre-closing Trial Balance 12/31/2019 Debit Budgetary accounts Estimated revenues property $ Estimated revenues-licenses and fees Estimad revenues fines and peace Appropriations - salaries Appropriations supplies and its Appropriations - debt service Budgetary fund balance Financial accounts: Cash Property taxes receivable Accrued expenditures payable Fund balance and Reveres property taxes Revenloses and fees Reventees and penalties Expenditures salones Dxpenditures - Supplies and the Expenditures de serve Total 5 Prepare a balance sheet a statement of revenues expenditures and changes in fund balance and a budgetary comparison schedule. Make sure you consider journal entry 8 wher you prepare the budgetary comparison schedule E. Staatsboro General Fund Balance Sheet December 31, 2019 Assets: Cash $ Property taxes receivable Total assets Liabilities: Accrued expenditures payable $ Total liabilities Rund Balance Unassigned Total abilities and fund balance $ $ $ Do not use negative signs with any answers in the table below. E. Staatsboro General Fund Statement of Revenues, Expenditures, and Changes in Fund Dylance For the Year Ended December 31, 2019 Revenues Property taxes 5 Licenses and fees Fines and penalties Total revenues Expenditures Salaries Supplies and utilities Debt service Concu pen Salaries Supplies and its Debt service Tots expenditures Excess of revenues over expenditures and net change in fund balance Rund balance, beginning of year Pund balance, end of year Actual Variance Use negative signs with answers in the Variante column when appropriate Staatshore General Fund Budgetary Comparison Schedule For the Year Ended December 31, 2019 Original Budget Reven Property taxes Licenses and fres Fines and penalties Total revenues Expenditures Salaries Supplies and slities Debt service Total expenditures Excess of revenues over eenditures and net change in fund balance Fund balance beginning Fund balance, end of year Total revenues Expenditures: Salaries Supplies and utilities Debt service Total expenditures Excess of revenues over expenditures and net change in fund balance Fund balance, beginning Fund balance, end of year $ d. Prepare closing journal entries. Description Debit Credit $ . e e To close budgetary accounts . . To close financial accounts