Prepare the journal entries for the following transactions. Reclass entries should be posted to Fund Balance Assigned.

For Year 1: Prepare journal entries for the following transactions.

For Year 2: Prepare journal entries assuming

Appropriations lapse

Appropriations do not lapse

Provide the total fund balance at the end of Year 2 assuming

Appropriations lapse

Appropriations do not lapse

(assume beginning balance in fund balance accounts are zero)

Year 1

The city budgets estimated revenues of $9,700 and appropriations of $9,000.

The city issues purchase orders for goods and services, $7,500.

Of the goods and services ordered, the city received (and used) goods and services that it had estimated would cost $5,000. Actual cost was $5,300. (paid in cash). The remaining goods and services are expected to be received next year.

Actual revenues for the year (all in cash) are $9,800.

The city closes/reclasses the accounts at year-end.

Year 2

The city budgets estimated revenues of $10,500 and appropriations of $9,900.

The city restores encumbrances of the previous year (if applicable).

The city received (and used) all goods and services ordered in the previous year. Actual cost was only $2,500 (paid in cash).

The city incurred and paid for recurring expenditures totally 7,000. These funds were not encumbered.

Actual revenues for the year (all in cash) are $10,600.

The city closes/reclasses the accounts at year-end.

Part A Year 1

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Part B Year 2 Appropriations lapse

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Part B Year 2 - Appropriations Do Not Lapse

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Part C

Total Fund Balance end of Year 2 Appropriations lapse ______________________

Total Fund Balance end of Year 2 Appropriations Do Not Lapse _________________