(General Ledger-Subsidiary Ledgers Relationship, Closing Entries, Budgetary Statement) The Eastover City Council adopted the following budget for its General Fund for 20X8. The budget was not revised during the fiscal year. The budgetary basis was modified accrual.

City of Eastover

General Fund

Budget

For Fiscal Year 20X8

Estimated Revenues

Taxes $3,500,000

Interest and penalties 96,000

Licenses and permits 240,000

Fines and forfeitures 75,000

Intergovernmental grants 1,300,000

Investment Income 85,000

Total estimated revenues $5,296,000

Appropriations

General government $560,000

Public Safety 1,900,000

Highways and streets 1,090,000

Health and sanitation 500,000

Economic development 500,000

Public Housing 370,000

Parks and recreation 330,000

Total appropriations 5,250,000

Budgeted excess of revenues over appropriations $46,000

The preclosing trial balances of the Revenues and Expenditures Subsidiary Ledgers at the end of fiscal year 20X8 are:

City of Eastover

General Fund

Preclosing Trial Balances

Revenues and Expenditures Subsidiary Ledgers

September 30, 20X8

Revenues Subsidiary Ledger Debit Credit

Taxes $30,000

Interest and penalties 5,000

Licenses and permits 20,000

Fines and forfeitures 13,000

Intergovernmental grants 500,000

Investment Income 5,000

Totals $55,000 $518,000

Expenditures Subsidiary Ledger

General government $200

Public Safety $500

Highways and streets 1,000

Health and sanitation 1,000

Economic development 1,800

Public Housing 1,800

Parks and recreation 330

Totals $1,530 $5,100

The only encumbrances outstanding at year end were for $75,000 of unperformed contracts for the Health and sanitation function. The beginning total fund balance was $312,000.

A. Prepare closing entries for both the General Ledger accounts and the subsidiary ledgers of the City of Eastover General Fund. (Hint: You will have to derive the General Ledger balances of some accounts.)

B. Prepare the Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual for the General Fund of the City of Eastover for fiscal year 20X8.