The July 1, 2019 balance sheet for the general fund of the Town of Hiller, Texas is:

TOWN OF HILLER General Fund Balance Sheet July 1, 2019
(in thousands)
Cash	$60,000		Accounts payable	$6,000
Taxes receivable	5,000		Fund balanceunassigned	59,000
Total assets	$65,000		Total liabilities and fund balance	$65,000

Transactions for the town during fiscal 2020 were (in thousands):

1. The town council approved a budget estimating revenues of $50,000 in property taxes and $15,000 in fees and service charges. The budget authorized expenditures of $68,000.

2. Property taxes were accrued. Uncollectible taxes are considered negligible.

3. Taxes of $4,950 were collected from last year, and $46,000 of this years taxes were collected. Uncollected taxes from last year were written off. The remaining uncollected taxes from this year are expected to be collected within 60 days of fiscal year-end.

4. Expenditures were $66,500, and purchase orders of $1,000 were outstanding at fiscal year-end.

5. Bills of $67,000 were paid in cash.

6. Fees and service charges of $13,500 were collected in cash.

Required

a. Prepare the journal entries to record the budget and transactions for fiscal 2020.

Date	Description		Debit	Credit
1	Answer

		Answer	Answer
	Fund balanceunassigned		Answer	Answer
	Answer

		Answer	Answer
	To record budget.
2	Answer

		Answer	Answer
	Answer

		Answer	Answer
	To record property tax levy.
3	Cash		Answer	Answer
	Answer

	Answer	Answer
	Answer

	Answer	Answer
	To record collection of last year's taxes.
	Answer

	Answer	Answer
	Answer

	Answer	Answer
	To record collection of this year's taxes.
4	Answer

	Answer	Answer
	Answer

	Answer	Answer
	To record expenditures.
	Answer

	Answer	Answer
	Answer

	Answer	Answer
	To account for purchase orders outstanding.
5	Answer

	Answer	Answer
	Answer

	Answer	Answer
	To record payment of bills.
6	Answer

	Answer	Answer
	Answer

	Answer	Answer
	To record collection of fees and service charges.

b. Prepare closing entries for fiscal 2020.

Description		Debit	Credit
Property tax revenues		Answer	Answer
Fee and service revenues		Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
Expenditures		Answer	Answer
Encumbrances		Answer	Answer

c. Compute the unassigned fund balance at June 30, 2020.

$Answer

d. Prepare a budgetary comparison schedule for fiscal 2020. Use the GAAP budgetary basis.

Use negative signs with your answers to indicate an unfavorable variance.

Use a negative sign with your answers for Change in fund balances to represent a decrease in fund balance, if appropriate.

Budgetary Comparison Schedule For the Year Ended June 30, 2020
		Budget	Actual	Variance Favorable (Unfavorable)
Revenues		$Answer	$Answer	$Answer
Expenditures		Answer	Answer	Answer
Change in fund balances		$Answer	$Answer	$Answer

e. Prepare the general fund balance sheet at June 30, 2020.

TOWN OF HILLER General Fund Balance Sheet June 30, 2020
(in thousands)
Cash		$Answer		Accounts payable		$Answer
Taxes receivable		Answer		Fund balance assigned		Answer
				Fund balance unassigned		Answer
Total assets		$Answer		Total liabilities and fund balance		$Answer