Please perform closing entries.

Ch. 4 Part 2 Special Revenue Fund Transactions

Record journal entries for the following transactions for fiscal year 2017 and post them to the general ledger. Round any computations to the nearest dollar. As there are relatively few revenues and expenditures, make entries directly to individual revenue and expenditure accounts (do not use control accounts).

Entry Reference

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.

Cash in the total amount of $997,000 was received from the state government.

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

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.

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

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

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

Closing Entries: Prepare and post the closing entries for the Street and Highway Fund (there is a separate tab in the template for these entries).

The column for the Street and Highway Fund can now be completed in both the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance and Governmental Funds Balance Sheet.

G H O P Special Revenue Fund - Street and Highway Fund General Journal Special Revenue Fund- Street and Highway Fund General Ledger Accounts bba beginning balance DUE FROM STATE GOVT 107,000 1,065,000 4 reference Account Titles Debits Credits CASH INVESTMENTS 923,000 6 4,500 7 59,000 997,000 2 6 3.2 Estimated Revenuce 1,068,000 997,000 5,120 047000S 21,000 31,062,000 Bud. Fund Balance 10 4.2.1 Due from state gov 1,065,000 97,620 59,000 1,237,000 1,065,000 12 13 4.2.2 14 15 16 4.2.3 997,000 TOTAL FUND BALANCE Due from state gov ACCOUNTS PAYABLE 9,000 bb 1,042,0004 180,000 bb Due from State Gov revenues intergovernmental 19 4.2.4 128,000 180,000 Accounts Payable 1,042,000 REVENUES INTERGOVERNMENTAL REVENUES EXPENDITURES STREET 22 4.2.5 120 INVESTMENT INTEREST 5,120 s & HIGHWAY MAINTENANCE Revenues investment interest 120 1,065,000 1,062,000 3 4 1,042,000 25 4.2.6 Accounts Payable 923,000 923,000 2.127,000 1,042,000 28 4.2.7 500 BUDGETARY ACCOUNTS BUDGETARY FUND BALANCE 30 ESTIMATED REVENUES APPROPRIATIONS 1,047,000 21,000 1,042,500 21,000 36 BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCES ENCUMBRANCES 1,042,000 40 1,042,0001,062,000 46 Total Debits Total Credits 48 3,523,620 G H O P Special Revenue Fund - Street and Highway Fund General Journal Special Revenue Fund- Street and Highway Fund General Ledger Accounts bba beginning balance DUE FROM STATE GOVT 107,000 1,065,000 4 reference Account Titles Debits Credits CASH INVESTMENTS 923,000 6 4,500 7 59,000 997,000 2 6 3.2 Estimated Revenuce 1,068,000 997,000 5,120 047000S 21,000 31,062,000 Bud. Fund Balance 10 4.2.1 Due from state gov 1,065,000 97,620 59,000 1,237,000 1,065,000 12 13 4.2.2 14 15 16 4.2.3 997,000 TOTAL FUND BALANCE Due from state gov ACCOUNTS PAYABLE 9,000 bb 1,042,0004 180,000 bb Due from State Gov revenues intergovernmental 19 4.2.4 128,000 180,000 Accounts Payable 1,042,000 REVENUES INTERGOVERNMENTAL REVENUES EXPENDITURES STREET 22 4.2.5 120 INVESTMENT INTEREST 5,120 s & HIGHWAY MAINTENANCE Revenues investment interest 120 1,065,000 1,062,000 3 4 1,042,000 25 4.2.6 Accounts Payable 923,000 923,000 2.127,000 1,042,000 28 4.2.7 500 BUDGETARY ACCOUNTS BUDGETARY FUND BALANCE 30 ESTIMATED REVENUES APPROPRIATIONS 1,047,000 21,000 1,042,500 21,000 36 BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCES ENCUMBRANCES 1,042,000 40 1,042,0001,062,000 46 Total Debits Total Credits 48 3,523,620