Please help with the closing entries.

4C. Part 2. Special Revenue Fund Transactions

Required:

a. Record journal entries for the following transactions for FY 2017 and post to the general ledger. As there are relatively few revenues and expenditures, the use of control accounts is not necessary. (Make entries directly to individual revenue and expenditure accounts).

(1) The state government notified the City that $1,065,000 will be available for street and highway maintenance during 2017 (i.e. the City has met eligibility requirements). The funds are not considered reimbursement-type as defined by GASB standards.

(2) Cash in the total amount of $997,000 was received from the state government

(3) Contracts, all eligible for payment from the Street and Highway Fund, were signed in the amount of $1,062,000.

(4) Contractual services (see transaction 3) were received; the related contracts amounted to $1,042,000. Invoices amounting to $1,040,500 for these items were approved for payment. The goods and services all were for street and highway maintenance.

(5) Investment revenue of $5,120 was earned and received.

(6) Accounts payable were paid in the amount of $923,000.

(7) All required legal steps were accomplished to increase appropriations in the amount of $4,500.

b. Prepare and post the necessary closing entries for the Street and Highway Fund.

c. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the Street and Highway Fund for the fiscal year ended December 31, 2017.

d. Prepare a Balance Sheet for the Street and Highway Fund as of December 31, 2017. Assume any unexpended net resources are classified as Restricted Fund Balance.

DUL INUM reference Account Titles Debits Credits INVESTMENTS 59,000 923,000 CASH 23,000 997,000 5,120 bb 2 997,000 2 STATE GOV'T 107,000 1,065,000 bb 1 1,065,000 1 Due from state govemment Revenue intergovermental 1,065,000 7-C 2 Cash 997,000 Due from state govemment 997,000 102,120 59,000 175,000 1,062,000 3 Encumbrances Reserve for Encumbrances 1,062,000 TOTAL FUND BALANCE (beginning of year) 180,000 bb ACCOUNTS PAYABLE 923,000 9,000 bb 1,040,500 4 1,040.500 4 Expenditure - Street & Highway Maintenance Accounts Payable Reserve for encumbrances Encumbrances 1,040,500 1,042,000 1,042,000 126,500 180,000 5 Cash 5,120 Revenue - Investment Interest 5,120 REVENUES INTERGOVERNMENTAL 1,065,000 1 REVENUES INVESTMENT INTEREST 5,120 5 EXPENDITURES - STREET & HIGHWAY MAINTENANCE 4 1,040,500 6 Accounts Payable Cash 923,000 923,000 4,500 7 Budgetary Fund Balance Appropriations 4,500 1,065,000 1.040,500 BUDGETARY ACCOUNTS ESTIMATED REVENUES APPROPRIATIONS 4,500 BUDGETARY FUND BALANCE 4,500 4,500 (4,500) BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCES - bb 1,042,000 1,062,000 3 ENCUMBRANCES 1,062,000 1,042,000 4 20,000 20,000 Total Debits Total Credits 1,396,620 1.396,620 Debits Credits BUDGETARY FUND BALANCE (4,500) Preclosing closing entry (4,500) FUND BALANCE 180,000 Preclosing closing entry 180,000 ending balance Non- spendable | Restricted Committed Assigned Unassigned Total DUL INUM reference Account Titles Debits Credits INVESTMENTS 59,000 923,000 CASH 23,000 997,000 5,120 bb 2 997,000 2 STATE GOV'T 107,000 1,065,000 bb 1 1,065,000 1 Due from state govemment Revenue intergovermental 1,065,000 7-C 2 Cash 997,000 Due from state govemment 997,000 102,120 59,000 175,000 1,062,000 3 Encumbrances Reserve for Encumbrances 1,062,000 TOTAL FUND BALANCE (beginning of year) 180,000 bb ACCOUNTS PAYABLE 923,000 9,000 bb 1,040,500 4 1,040.500 4 Expenditure - Street & Highway Maintenance Accounts Payable Reserve for encumbrances Encumbrances 1,040,500 1,042,000 1,042,000 126,500 180,000 5 Cash 5,120 Revenue - Investment Interest 5,120 REVENUES INTERGOVERNMENTAL 1,065,000 1 REVENUES INVESTMENT INTEREST 5,120 5 EXPENDITURES - STREET & HIGHWAY MAINTENANCE 4 1,040,500 6 Accounts Payable Cash 923,000 923,000 4,500 7 Budgetary Fund Balance Appropriations 4,500 1,065,000 1.040,500 BUDGETARY ACCOUNTS ESTIMATED REVENUES APPROPRIATIONS 4,500 BUDGETARY FUND BALANCE 4,500 4,500 (4,500) BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCES - bb 1,042,000 1,062,000 3 ENCUMBRANCES 1,062,000 1,042,000 4 20,000 20,000 Total Debits Total Credits 1,396,620 1.396,620 Debits Credits BUDGETARY FUND BALANCE (4,500) Preclosing closing entry (4,500) FUND BALANCE 180,000 Preclosing closing entry 180,000 ending balance Non- spendable | Restricted Committed Assigned Unassigned Total