PROBLEM 17-4 Entries, Balance Sheet, Statement of Revenues, Expenditures, and

Changes in Fund Balance

The trial balance for the General Fund of the City of Monte Vista as of December 31, 2012, is

presented here:

Debit Credit

Cash $300,000

Supplies Inventory 75,000

Unreserved Fund Balance $300,000

Reserve for Supplies Inventory 75,000

Totals $375,000 $375,000

Transactions of the General Fund for the year ended December 31, 2013, are summarized as

follows:

1. The City Council adopted the following budget for 2013:

Estimated revenue $1,600,000

Transfer from trust fund 50,000

Appropriations 1,530,000

Transfer to debt service fund 80,000

2. Property taxes of $1,500,000 were levied, of which it is estimated that $30,000 will not be

collected.

3. Purchase orders in the amount of $1,400,000 were placed with suppliers and other vendors.

4. Property taxes in the amount of $1,450,000 were collected.

5. Cash was received from the Trust Fund in the amount of $50,000.

6. Invoices in the amount of $1,380,000 were approved for payment. The amount originally

encumbered for these invoices was $1,360,000. The invoices included $25,000 net of

trade-in allowance for the purchase of a new minicomputer and $400,000 for supplies.

The City received a trade-in-allowance of $4,000 on its old minicomputer, which had been

purchased three years earlier for $16,000. At the time the old minicomputer was purchased,

it was estimated that it would have a useful life of four years. The new minicomputer

is expected to last at least six years. The City of Monte Vista uses the purchase

method to account for supplies inventory.

7. Licenses and fees in the amount of $48,000 were collected.

8. Vouchers in the amount of $1,300,000 were paid.

9. Cash in the amount of $80,000 was transferred to the Debt Service Fund.

10. Supplies on hand at the end of the year amount to $100,000.

Required:

A. Prepare entries in general journal form to record the transactions of the General Fund

for the year ended December 31, 2013.

B. Prepare a preclosing trial balance for the General Fund as of December 31, 2013.

C. Prepare the necessary closing entries for the General Fund for the year ended December

31, 2013.

D. Prepare a balance sheet and a statement of revenues, expenditures, and changes in fund

balance for the General Fund for the year ended December 31, 2013.

Please show all work.....preferably in an excel document.