Government Accounting:

Part 1. Please prepare all general fund journal entries, INCLUDING ALL CLOSING ENTRIES, for the below transactions for the year ended December 31, 2006.

Transactions for the City of Berry January 1, 2006 through December 31, 2006.

1. Beginning balances in the General Fund's Trial Balance at 1/1/06:

Name of account	Debit	Credit
Cash	$200,000
Tax Receivable Delinquent	$40,000
Allowance for Uncollectable Taxes - Delinquent		$20,000
Inventory - Supplies	$20,000
Accounts Payable		$15,000
Fund Balance Assigned for Encumbrances		$20,000
Unassigned Fund Balance		$205,000
TOTALS	$206,000	$206,000

2. The Budget for Y2006 is: ESTIMATED REVENUES $400,000 and APPROPRIATIONS $350,000.

3. On March 1, 2006, Berry's General Fund issued a tax levy of $380,000 with a 5% allowance for uncollectable. These funds are for the general operating of the city.

4. On June 1, 2006 Berry's General Fund collected $345,000 on the current tax receivable levy, and $20,000 on the delinquent tax receivables. The remaining delinquent property tax receivables at the beginning of the current year were now written off as uncollectable. The net realizable amounts at 12/31/2005 and 12/31/2006 were expected to be collected within 60 days after year end.

5. On July 15, 2006 Berry's General Fund transferred $60,000 to the Water Utility Enterprise Fund (EF) in order to establish that fund (this is for the City of Berry's Water Utility Enterprise Fund).

6. On September 30, 2006, the Utility EF billed Berry's General Fund $50,000 for utilities used. Payment has not been made as of the end of the year.

7. On October 20th, 2006 the General Fund ordered a new generator at an estimated cost of $31,000. This generator came in at an actual cost of $30,000 on November 1, 2006 and the General fund paid for this item at this time. This item has a 5 year life.

8. On December 31, 2006 the General Fund paid $4,000 for expenses related to the running of the City Civic Center.

9. On July 1, 2006 Berry's General Fund ordered a new computer for $10,000 and a new desk for $2,000. On August 1, 2006, the new computer came in at an actual cost of $8,000 and this amount was paid at this time. The city expects to keep the computer for a useful life of 4 years.

10. The General Fund's prior year's order that was outstanding at year end came in on December 1, 2006 at an actual cost of $18,000 and was paid (this was for supplies).

11. The General Fund paid the beginning accounts payable (on the trial balance at 1/1/05) on March 1, 2006.

12. As of December 31, 2006 year-end the supplies inventory left in the General Fund was $5,000.

13. The City of Berry's General Fund paid $150,000 for wages for the year 2006. These wages were all incurred and used up during the 2006 year.

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This is what I got for part 1, though I do not know how to do the closing entries.

January 1, 2006: Dr. EST REV $400,000

Cr. APPR $350,000

Cr. BFB UNASS $50,000

March 1, 2006: Dr. PTR C $380,000

Cr. ALLOW C $19,000

Cr. REV $361,000

June 1, 2006: Dr. Cash $365,000

Cr. PTR C $345,000

Cr. PTR D $20,000

Dr. ALLOW D $20,000

Cr. PTR D $20,000

July 15, 2006: Dr. OFU TO to EF $60,000

Cr. Cash $60,000

Sept 30, 2006: Dr. Expenditures $50,000

Cr. Due to UEF $50,000

Oct 20, 2006: Dr. Encumbrances $31,000

Cr. BFB ASS $31,000

Nov 1, 2006: Dr. BFB ASS $31,000

Cr. Encumbrances $31,000

Dr. Expenditures $30,000

Cr. VP $30,000

Dec 31, 2006: Dr. Expenditures $4,000

Cr. Cash $4,000

July 1, 2006: Dr. Encumbrances $12,000

Cr. BFB ASS $12,000

Aug 1, 2006: Dr. BFB ASS $12,000

Cr. Encumbrances $12,000

Dr. Expenditures $10,000

Cr. VP $10,000

Dec 1, 2006: Dr. Fund Bal Ass $18,000

Cr. Cash $18,000

March 1, 2006: Dr. AP $15,000

Cr. Cash $15,000

Dec 31, 2006: Dr. Expenditures $15,000

Cr. Inv $15,000

Dr. Expenditures SW $150,000

Cr. VP $150,000