Required:

During the year 2017, the district engaged in the following transactions. Make appropriate journal entries. This is the first year of operations.

Post the journal entries to the general ledgers.

Balance Sheet showing the status of yearend asset and fund balance accounts.

Statement of Revenues, Expenditures and Changes in Fund Balances for the year.

The following are the transactions that are needed for the above requirements:

Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $5,600 (all dollar amounts in this exercise are expressed in thousands) and expenditures of $5,550 were appropriated (authorized). Record the budget using only the control (summary) accounts.

It collected $5,800 in fees, grants, taxes, and other revenues.

It ordered goods and services for $3,000. Except in special circumstances it classifies reserves for encumbrances as assigned fund balance.

During the year it received and paid for $2,800 worth of goods and services that had been previously encumbered. It expects to receive the remaining $200 in the following year.

It incurred $2,500 in other expenditures for goods and services that had not been encumbered.