Property Tax Transactions

On March 15, the town of Endicott levied property taxes of $35,000,000 . Based on past experience, town management estimated that the town will not collect 3 percent of the taxes. Taxes were due September 30, but $9,900,000 was received before that date from taxpayers taking advantage of a 1 percent discount for early payment. Endicott treats discounts given as a reduction of revenues. On December 31, the town's year-end, outstanding taxes totaled $2,000,000 of which $500,000 is expected to be collected during the first 60 days of the new year. Actual expenditures for the year of $33,000,000, paid in cash, equaled appropriations. The budget entry included estimated revenues of $32,000,000. Before the budget entry, the fund balance for the general fund was $5,000,000.00. No taxes receivable existed prior to the current year.

Required

b. Calculate the general fund's fund balance at December 31 . b. Calculate the general fund's fund balance at December 31