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Transactions, Closing Entries, Budgetary Comparison Schedule, and Balance Sheet This is all the information that was given on the problem The July 1, 2019 balance

Transactions, Closing Entries, Budgetary Comparison Schedule, and Balance Sheet

This is all the information that was given on the problem

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

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