Question
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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