P10.13 General Fund-Entries and Financial Statements Below are the July 1, 2022, balances for the LO 3 general fund of Montana County. The county's fiscal year ends June 30. X MBC Cash.. Taxes receivable. Allowance for uncollectible taxes Due from special revenue fund. Accounts payable.... Fund balance-assigned. Fund balance-unassigned.. Totals Debit $120,000 Credit 22,500 $ 14,000 15,000 7,500 3,000 133,000 $157,500 $157,500 Montana County uses the purchases method for inventories, and the GAAP budgetary basis for encum- brances outstanding at year-end. Assigned fund balance consists of outstanding encumbrances. The begin- ning balance for taxes receivable are uncollected 2022 taxes. All expenditures are recorded in accounts payable. The following events occurred in fiscal 2023: 1. Passed the 2023 budget, consisting of expected revenues from property taxes, fees, and licenses of $370,500, expected state grants of $40,000, estimated expenditures of $370,000, and expected trans- fers out of $50,000. Accrued the state grants. 2. Levied property taxes of $300,000, of which 5 percent are estimated to be uncollectible. Collected $280,000 of these taxes. 3. Received $25,000 in state grants. 4. Collected $10,000 in 2022 taxes; wrote off the remainder. 5. Transferred $50,000 to the special revenue fund. 6. Received $65,000 in cash for fees and licenses. 7. Received the inventories connected with purchase orders outstanding as of the end of fiscal 2022. The inventory was invoiced at $3,200. 8. Paid $8,000 to the capital projects fund, as a temporary loan. 9. Received $12,000 from the special revenue fund as partial repayment of a loan made in fiscal 2019. 10. Purchased inventories of $45,000. 11. Made other expenditures of $320,000 during the year. Purchase orders outstanding at year-end total $1,600. 12. Total accounts payable paid in fiscal 2023 amounted to $367,000. 13. Of the fiscal 2023 taxes uncollected at year-end, $8,000 are expected to be collected within 60 days. Required a. Prepare entries necessary at the beginning of the year to record the budget and make any other neces- sary adjustments or accruals. b. Prepare entries necessary to record the events of the year and any year-end adjustments. C. Prepare the necessary closing entries for June 30, 2023. d. Present, in good form, the statement of revenues, expenditures, and changes in fund balances for Montana County for fiscal 2023. Include a reconciliation of beginning and ending fund balances. e. Present, in good form, the balance sheet for the general fund of Montana County for June 30, 2023. a. Prepare entries necessary at the beginning of the year to record the budget and make any other necessary adjustments or accruals. Description Estimated Revenues Estimated other Financing uses Debit Credit 370,500 50,000 To establish budget. 420,500 To reverse outstanding encumbrances closing entry from last year. To accrue state grant. 7,500 25,000 b. Prepare entries necessary to record the events of the year and any year-end adjustments. Description Property Tax Revenue To record property tax bills. To record property tax collection. To record state grant cash received. To record collection of fiscal 2022 taxes Debit Credit 285,000 To record collection of fiscal 2022 taxes To write off uncollected fiscal 2022 taxes. To record transfer to special revenue fund. To record fee and license revenue received in cash. To record receipt of inventories on purchase orders sent last year. To record advance to capital projects fund. To record collection of loan to special revenue fund. To record inventories purchased on account. To record other expenditures for the year. To record purchase orders outstanding at year-end. To record purchase orders outstanding at year-end. To record payment of accounts payable. Adjusting entries at year-end: Description To fully reserve uncollected taxes at year-end. c. Prepare the necessary closing entries for June 30, 2023. Description To close revenues against estimated revenues. Debit Credit Please Ret Debit Credit To close expenditures and other financing uses against appropriations and estimated other financing uses. d. Present the statement of revenues, expenditures, and changes in fund balances for Montana County for fiscal 2023. Montana County General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023 (in thousands) Revenues $ 289,500 65,000 40,000 Total revenues 394,500 Expenditures 368,200 Excess of revenues over (under) expenditures 762,700 Other financing sources (uses) 26,300 Excess of revenues over (under) expenditures and other financing uses 789,000 Please Retry! Fund balances-July 1, 2022 Fund balances-June 30, 2023 Calculation of fund balances: Fund balances-July 1, 2022 (1) Fund balance-assigned Fund balance-unassigned $ Fund balancesJune 30, 2023 (2) Fund balance-assigned Fund balance-unassigned $ Please Retry! e. Present the balance sheet for the general fund of Montana County for June 30, 2023. Montana County General Fund Balance Sheet At June 30, 2023 (in thousands) Assets Total assets Liabilities and fund balances Liabilities: Fund balances: Total fund balances $ Please Retry! Please Retry!