Solomon Islands government health care incorporates its budget in its accounting system and encumbers all purchase orders and contracts. Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $6000 and expenditures of $5000 were appropriated. 2. During the year, the SI government health collected $6000 in fees, grants, taxes, and other revenues. 3. It ordered goods and services for $4000. 4. During the year it received and paid for $3000 of goods and services that had been previously encumbered 5. It incurred $2000 in other expenditures for goods and services that had not been encumbered.

REQUIREMENT: 1. Prepare journal entries of the above transactions. 2. Prepare end of year Closing entries 3. Prepare Fund balance and Encumbrance ledger accounts