The trial balance for the General Fund of the City of Lenexa as of December 31, 2004 is presented below:

CITY OF LENEXA

The General Fund

Adjusted Trial Balance

December 31, 2004

Debit Credit

Cash $216,000

Property Tax Receivable 31,000

Estimated Uncollectible Taxes $ 10,000

Due from Trust Fund 41,000

Vouchers Payable 55,000

Fund Balance - Assigned 18,000

Fund Balance - Unassigned 205,000

$288,000 $288,000

Transactions for the year ended December 31, 2005 are summarized as follows:

The City Council adopted a budget for the year with estimated revenue of $560,000 and appropriations of $530,000. (Journal entry completed by instructor --- SEE JOURNAL ENTRY SECTION BELOW) You are required to explain each line of the journal entry and related financial statement impact.

Property taxes in the amount of $355,000 were levied for the current year. It is estimated that $14,000 of the taxes levied will prove to be uncollectible. (Journal entry completed by instructor --- SEE JOURNAL ENTRY SECTION BELOW) You are required to explain each line of the journal entry and related financial statement impact.

Proceeds from the sale of equipment in the amount of $24,000 were received by the General Fund. The equipment was purchased four years ago with resources of the General Fund at a cost of $200,000. On the date it was purchased, it was estimated that the equipment had a useful life of six years. (Journal entry completed by instructor--- SEE JOURNAL ENTRY SECTION BELOW) You are required to explain each line of the journal entry and related financial statement impact.

Licenses and fees in the amount of $90,000 were collected. (Journal entry completed by instructor--- SEE JOURNAL ENTRY SECTION BELOW) You are required to explain each line of the journal entry and related financial statement impact.

The total amount of encumbrances against fund resources for the year was $445,000. (Journal entry completed by instructor--- SEE JOURNAL ENTRY SECTION BELOW) You are required to explain each line of the journal entry and related financial statement impact.

Vouchers in the amount of $325,000 were authorized for payment. This was $8,000 less than the amount originally encumbered for these purchases. (Journal entry completed by instructor--- SEE JOURNAL ENTRY SECTION BELOW) You are required to explain each line of the journal entry and related financial statement impact.

For 7 9, and 11 (below) prepare the necessary journal entry and

Explain each line of the journal entry and related financial statement impact.

7. An invoice in the amount of $17,000 was received for goods ordered in 2004. The invoice was approved for payment.

8. Property taxes in the amount of $320,000 were collected.

9. Vouchers in the amount of $290,000 were paid.

10. Forty-one thousand dollars was transferred to the General Fund from the Trust Fund. (Journal entry completed by instructor--- SEE JOURNAL ENTRY SECTION BELOW) You are required to explain each line of the journal entry and related financial statement impact.

11. The City Council authorized the write-off of $18,000 in uncollected property taxes.

JOURNAL ENTRY SECTION

DEBIT CREDIT

1. Estimated Revenue 560,000

Appropriations 530,000

Fund Balance - Unassigned 30,000

Q1) Explain each line of the journal entry and related financial statement impact.

2. Property Tax Receivable 355,000

Estimated Uncollectible Taxes 14,000

Revenue 341,000

Q2) Explain each line of the journal entry and related financial statement impact.

3. Cash 24,000

Revenue 24,000

Q3 Explain each line of the journal entry and related financial statement impact.

4. Cash 90,000

Revenue 90,000

Q4 Explain each line of the journal entry and related financial statement impact.

5. Encumbrances 445,000

Fund Balance - Assigned 445,000

Q5 Explain each line of the journal entry and related financial statement impact.

6. Expenditures 325,000

Vouchers Payable 325,000

Fund Balance - Assigned 333,000

Encumbrances 333,000

Q6 Explain each line of the journal entry and related financial statement impact.

10. Cash 41,000

Due from Trust Fund 41,000

Q7) Explain each line of the journal entry and related financial statement impact.

Q8) Prepare the necessary closing entries for the year ending December 31, 2005. --- Note: I have provided the accounts in proper debit/credit format ---- you have to complete the entries by providing the proper amount. And Explain each line of the journal entry and related financial statement impact.

Q9) Prepare 12/31/2005 --- Balance Sheet and Year Ended 12/31/2005 Income Statement and Statement of Fund Balance