, School District #25 formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At year-end, before closing entries, the district had the following balances in its accounts. All accounts had normal balances. REQUIRED: (a) Prepare at least two necessary closing entries. Accounts Payable Appropriations Cash Encumbrances Estimated revenues Expenditures Fund balance Reserve for encumbrances Revenues $ 75 885 258 30 900 859 165 30 892