II. Below are all the accounts on the unadjusted trial balance for the town of Fairhope. The
town uses the purchase method for supplies. Make the adjusting (a-c) and prepare the balance sheet (part d)
for the information presented below: (18 points)
				Debit	Credit
		Cash		$180,000
		Property tax receivable		50,000
		Allow. for doubtful accts			18,000
		Supplies		3,000
		Vouchers payable			43,000
		Deferred grant revenue			24,000
		Fund Balance: Assigned For Encumbrances-prior year		22,000
		Nonspendable Fund Balance supplies			3,000
		Budgetary Fund Balance: Assigned for Encumbrances: current year	35,000
		Fund Balance: Unassigned			17,000
		Budetary Fund Balance: Unassigned			64,000
		Property tax revenues			380,000
		Sales tax revenues			60,000
		Revenues from permits			5,000
		Other Financnig Sources: Transfers-in			25,000
		Expenditures current		364,000
		Encumbrances		35,000
		Estimated revenues		430,000
		Estimated transfers-in		24,000
	Appropriations			390,000
a) It is estimated that 90% of the remaining tax receivables (gross receivables) will be collected within 60
days. (3 points)
b) Of the current expenditures, $20,000 are related to fulfilling the objectives of the deferred grant
revenue. (3 points)
c) There are supplies of $8,000 remaining. (4 points)
d) Prepare the Balance Sheet (you do not have to show the closing entries although it may help you and makes it easier for me to give partial credit) (8 points)