Following is the post-closing trial balance of the General Fund of Leisure City as of December 31, 2020:

Cash $300,000

Property taxes receivable delinquent 50,000

Due from state government 80,000

Supplies and materials 30,000

Salaries payable $25,000

Nonspendable fund balance 30,000

Assigned fund balance 15,000

Unassigned fund balance ________ 390,000

$460,000 $460,000

Additional information is provided regarding the citys accounting policies and other matters:

1. The city uses encumbrance accounting and encumbrances lapse if they are outstanding at the close of a fiscal year. They are, however, included in the following years appropriation. Outstanding encumbrances at the end of 2020 ($15,000) are reported as Assigned fund balance.

2. The city uses the purchases method to record the acquisition of supplies. The year-end supplies inventory is considered to be material and is reported in the citys financial statements.

3. The citys maintains a provision for uncollectible accounts.

The following transactions and events occurred in 2021 Note: each transaction may involve more than one fund. The appropriate fund must be identified to receive credit.

1. The city council of Leisure City approves the following budget for fiscal year 2021:

Estimated Revenues

Property taxes $3,200,000

Income taxes 2,400,000

Intergovernmental grants 300,000

Fines and penalties 100,000

Appropriations

Food Inspection program $300,000

Salaries (other programs) 4,000,000

Supplies and materials (other programs) 600,000

Other program costs 600,000

Transfer to other funds 450,000

2. Open encumbrances at the end of 2020 are restored.

3. Leisure City levies property taxes for the full amount budgeted. Experience shows that about $300,000 of that amount will not be collected for various reasons.

4. Cash is received of $2,800,000 on the property tax levy.

5. The Mayors office received an invoice for $15,000 from the Citys Electric Utility Fund for electricity service.

6. The General Fund loaned $30,000 to the Park Improvement Fund.

7. Cash is received of $2,300,000 for income taxes.

8. The General Fund transferred $50,000 to the Citys Mass Transit Authority as a subsidy because transit fares were insufficient to pay the authoritys operating expenses.

9. The General Fund receives and pays an invoice for $34,000 for consulting services and records the entire amount as expenditures. The General Fund then bills the Capital Projects Fund $10,000 for that funds share of the consulting services.

10. Fines and penalties revenue of $90,000 is received.

11. The city receives a grant from the state for inspecting food establishments. The grant is for a maximum amount of $300,000, subject to the following requirements: (a) the state will reimburse the city for 50 percent of all expenditures paid by the city on the food inspection program, up to the maximum amount of the grant; and (b) the city must file a claim for the balance due to the city by no later than December 31, 2021. The city pays $580,000 to operate the inspection program

12. The city files a claim on December 31 for the balance due from the state for the program.

13. Purchase orders for supplies and materials are placed in the amount of $280,000 and charged to the appropriation Supplies and materials other programs.

14. Items from transaction 13 are received along with invoices of $260,000. The invoices are paid. The original encumbrances totaled $265,000.

15. City employee salaries of $3,025,000 are paid during the year.

16. For the last week in December 2021, the Citys employees earned $620,000. They are paid in the first week of January.

17. The City uses the purchases method to account for the acquisition of supplies by its General Fund. At the end of fiscal year 2021, the supplies inventory was valued at $43,000.

18. Prepare the closing entries for the general fund budget and encumbrances.

19. Prepare the closing entries for the general fund nominal accounts