Microsoft Corp.
On July 1, XXXX (beginning of fiscal year), the fund balance of the general fund of Microsoft Corp. was $400,000. During the year, revenues amounting to $1,000,000 were realized and expenditures amounting to $550,000 were incurred. Asset and liability account balances as of June 30, XXXX (end of fiscal year), were as follows:

• Taxes receivable: $1,200,000
• Accounts payable: $120,000
• Cash in bank: $85,000
• Warrants payable: $750,000
• Contracts payable: $550,000
• Investments: $650,000
• Loans receivable: $8,000

Instructions:

1. Prepare a statement of revenues, expenditures and fund balance for the year ended June 30, XXXX.
2. Prepare a balance sheet as of June 30, XXXX.