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The city council of approved the following budget for the General Fund for fiscal year 2020: Revenues Property taxes $340,000 License fees 35,000 Fines and

The city council of approved the following budget for the General Fund for fiscal year 2020:

Revenues

Property taxes $340,000

License fees 35,000

Fines and penalties 25,000

Total revenues $400,000

Appropriations

Salaries $340,000

Supplies and utilities 38,000

Debt service 5,000

Total appropriations $383,000

Budgeted Increase in Fund Balance $17,000

The post closing trial balance for the fund, as of December 31, 2012, was as follows:

Debits Credits

Cash 25,000

Vouchers payable 18,000

Fund balance (unassigned) 7,000

25,000 25,000

The following transactions and events occurred during FY 2013:

1- Levied property taxes of $340,000 and mailed tax bills to property owners.

2- Borrowed $300,000 on tax anticipation notes at an interest rate of 2 percent per annum.

3- Ordered supplies expected to cost $19,000

4- Received the supplies along with an invoice for $20,000 ; paid the invoice immediately.

5- Received cash ($383,000 ) from the following sources: property taxes ($320,000 ), licenses and fees

($43,000), fines and penalties ($20,000 ).

6- Paid cash for the following purposes: unpaid vouchers at the start of year ($18,000), salaries

($325,000), utility bills ($17,000).

7- Repaid the tax anticipation notes 6 months after the date of borrowing, with interest.

8- Processed a budgetary interchange, increasing the appropriation for supplies and utilities by $2,000

and reducing the appropriation for salaries by a like amount.

9- Will pay salaries for the last few days in December, amounting to $4,000 , at the end of the first pay

period in January 20; also, received in early January 2014 a utilities invoice for $1,000 applicable to

December 2020

Use the preceding information to do the following:

a- Prepare journal entries to record the budget and the listed transactions and events.

b- Prepare Ledger Accounts

c- Prepare a preclosing trial balance.

NOTE: the trial balance must be equal

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