***QUESTION: FOR THE T-ACCOUNTS IN BLUE, WHERE DID 1,068,00 FOR ESTIMATED REVENUES COME FROM? APPROPRIATIONS OF 1,047,000? BFB OF 21,000?***

Record journal entries for the following transactions for FY 2017 and post to the general ledger. As there are relatively few revenues and expenditures, the use of control accounts is not necessary. (Make entries directly to individual revenue and expenditure accounts).

(1) 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.

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

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

(4) 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.

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

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

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

b. Prepare and post the necessary closing entries for the Street and Highway Fund.

c. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the Street and Highway Fund for the fiscal year ended December 31, 2017.

d. Prepare a Balance Sheet for the Street and Highway Fund as of December 31, 2017. Assume any unexpended net resources are classified as Restricted Fund Balance.

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1 Due from State Government Revenue Intergovernmental 1,065,000 1,065,000 2 Cash 997,000 Due from State Government 997,000 1,062,000 3 Encumbrances Reserve for Encumbrances 1,062,000 1,042,000 4 Expenditure-Street & Highway Maintenance Accounts Payable 1,042,000 1,040,500 Reserve for Encumbrances Encumbrances 1,040,500 5,120 5 Cash Revenue - Investment Interest 5,120 6 Accounts Payable Cash 923,000 923,000 4,500 7 Budgetary Fund Balance Appropriations 4,500 Note; As no opening balance were given I am assuming the following balance as opening balance for preparing the Balancesheet bb 923,000 INVESTMENTS 59,000 bb bb CASH 21,000 997,000 5,120 STATE GOV'T 109,000 997,000 1,065,000 100,120 59,000 177,000 ACCOUNTS PAYABLE 923,000 9,000 bb 1,042,000 TOTAL FUND BALANCE (beginning of year) 180,000 128,000 180,000 REVENUES INTERGOVERNMENTAL 1,065,000 REVENUES INVESTMENT INTEREST 5,120 EXPENDITURES - STREET & HIGHWAY MAINTENANCE 1,042,000 1,065,000 5,120 1,042,000 BUDGETARY ACCOUNTS ESTIMATED REVENUES 1,068,000 APPROPRIATIONS 1,047,000 4,500 BUDGETARY FUND BALANCE 4,500 21,000 1,068,000 1,051,500 16,500 BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCES 1,040,500 bb 1,062,000 ENCUMBRANCES 1,062,000 1,040,500 21,500 te Windows Non- spendable Restricted Committed Assigne d 21,500 Unassigned 186.620 Total 208,120 Fund Balance . Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the Street nd Highway Fund for the fiscal year ended December 31, 2017. Revenues Intergovernmental Revenues Interest on Investments 1,065,000 5,120 Total Revenues $ 1,070,120 Expenditures Current: Street & Highway Maintenance Total Expenditures 1,042,000 1,042,000 Excess (Deficiency) of Revenues Over Expenditures 28,120 Fund Balance, January 1 Fund Balance, December 31 180,000 208,120 $ 17 d. Prepare a Balance Sheet for the Street and Highway Fund as of Decemb $ Assets Cash Investments Due from State Government Total Assets 100,120 59,000 177,000 336,120 $ Liabilities and Fund Equity Liabilities Accounts Payable $ 128,000 Fund Equity Fund Balance - Restricted for Street and Highway Maintenance Total Liabilities and Fund Equity 208,120 336,120 $ 1 Due from State Government Revenue Intergovernmental 1,065,000 1,065,000 2 Cash 997,000 Due from State Government 997,000 1,062,000 3 Encumbrances Reserve for Encumbrances 1,062,000 1,042,000 4 Expenditure-Street & Highway Maintenance Accounts Payable 1,042,000 1,040,500 Reserve for Encumbrances Encumbrances 1,040,500 5,120 5 Cash Revenue - Investment Interest 5,120 6 Accounts Payable Cash 923,000 923,000 4,500 7 Budgetary Fund Balance Appropriations 4,500 Note; As no opening balance were given I am assuming the following balance as opening balance for preparing the Balancesheet bb 923,000 INVESTMENTS 59,000 bb bb CASH 21,000 997,000 5,120 STATE GOV'T 109,000 997,000 1,065,000 100,120 59,000 177,000 ACCOUNTS PAYABLE 923,000 9,000 bb 1,042,000 TOTAL FUND BALANCE (beginning of year) 180,000 128,000 180,000 REVENUES INTERGOVERNMENTAL 1,065,000 REVENUES INVESTMENT INTEREST 5,120 EXPENDITURES - STREET & HIGHWAY MAINTENANCE 1,042,000 1,065,000 5,120 1,042,000 BUDGETARY ACCOUNTS ESTIMATED REVENUES 1,068,000 APPROPRIATIONS 1,047,000 4,500 BUDGETARY FUND BALANCE 4,500 21,000 1,068,000 1,051,500 16,500 BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCES 1,040,500 bb 1,062,000 ENCUMBRANCES 1,062,000 1,040,500 21,500 te Windows Non- spendable Restricted Committed Assigne d 21,500 Unassigned 186.620 Total 208,120 Fund Balance . Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the Street nd Highway Fund for the fiscal year ended December 31, 2017. Revenues Intergovernmental Revenues Interest on Investments 1,065,000 5,120 Total Revenues $ 1,070,120 Expenditures Current: Street & Highway Maintenance Total Expenditures 1,042,000 1,042,000 Excess (Deficiency) of Revenues Over Expenditures 28,120 Fund Balance, January 1 Fund Balance, December 31 180,000 208,120 $ 17 d. Prepare a Balance Sheet for the Street and Highway Fund as of Decemb $ Assets Cash Investments Due from State Government Total Assets 100,120 59,000 177,000 336,120 $ Liabilities and Fund Equity Liabilities Accounts Payable $ 128,000 Fund Equity Fund Balance - Restricted for Street and Highway Maintenance Total Liabilities and Fund Equity 208,120 336,120 $