Preparation of closing entries The Town of Red Tail reports the following trial balance after all entries have been made for the year:

Trial Balance	DR	CR
Cash	$192,147
Receivables
Real estate & personal property	15,480
Intergovernmental	160,083
Payables		$18,319
Deferred revenues		176,085
Fund balances:
Assigned		46,440
Unassigned		86,860
Revenues-real estate taxes		578,565
Intergovernmental revenues		105,651
Expenditures-general government	98,694
Expenditures-public safety	65,797
Expenditures-education	394,783
Expenditures-public works	32,899
Expenditures-human services	65,797
Expenditures-debt principal payments	2,580
Expenditures-debt interest payments	860
Other financing sources-proceeds from bonds	-	17,200
	$1,029,120	$1,029,120

The Towns budget for the year, originally entered into the financial records, was as follows:

ESTIMATED REVENUES	678,749
ESTIMATED OTHER FINANCING SOURCES	17,200
APPROPRIATIONS	(664,551)
BUDGETARY FUND BALANCE	31,398

In addition, the Town issued purchase orders for goods and services amounting to $7,740 that are outstanding at the end of the fiscal year. It intends to honor those purchase invoices.

Prepare the appropriate closing entries for the year.

Journal Entries
Description	Debit	Credit
APPROPRIATIONS	Answer	Answer
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
ESTIMATED OTHER FINANCING SOURCES	Answer	Answer
Revenues-Real estate & personal property taxes	Answer	Answer
Revenues-Intergovernmental	Answer	Answer
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
Expenditures-general government	Answer	Answer
Expenditures-public safety	Answer	Answer
Expenditures-education	Answer	Answer
Expenditures-public works	Answer	Answer
Expenditures-human services	Answer	Answer
Expenditures-debt principal payments	Answer	Answer
Expenditures-debt interest payments	Answer	Answer
To close out revenue & expenditure accounts.
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
To close remaining encumbrances.
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
AnswerBUDGETARY FUND BALANCEENCUMBRANCESESTIMATED REVENUESFund balance-assignedFund balance-unassignedOther financing sources-bond proceedsFund balance-nonspendable	Answer	Answer
To reserve fund balance for encumbrances to be honored in following year.