Year-end accounting for encumbrances A local government's budget policy allows open encumbrances to lapse at the end of the year. Its budget for the following year takes the open encumbrances into account, and expenditures resulting from those encumbrances are charged against the following year's appropriations. Its General fund has open encumbrances of $75,000 at the end of fiscal year 2022. There are no restrictions or commitments on the use of these resources. 1. What journal entry or entries should be made at the end of fiscal 2022 ? 2. What journal entry or entries should be made at the start of fiscal 2023 ? Entries are needed to close the encumbrances and record an assignment of fund balance, as follows: ntries are needed to restore the encumbrances and reverse the assigned classification, as follows