The general fund trial balance for the City of Los Alvos at December 31,2013, follows: Assigned fund

Question:

The general fund trial balance for the City of Los Alvos at December 31,2013, follows:

Assigned fund balance consists of outstanding encumbrances.
The following information is available for the year 2014:
1. The general fund adopted the following budget for 2014:
Property tax revenues.......................................... $500,000
Licenses and fines................................................. 35,000
Federal grants......................................................100,000
General government expenditures...............................250,000
Human services expenditures....................................402,000
Transfers to other funds............................................14,000
2. Property taxes totaling $500,000 were levied. Of this amount, $50,000 was estimated to be uncollectible. Collections during the year were $430,000 on currently levied taxes and $60,000 related to taxes declared delinquent in 2013. Delinquent taxes uncollected as of the end of 2014 were written off. All uncollected 2014 property taxes were classified as delinquent and $15,000 of these taxes are expected to be collected early in 2015.
3. The $10,000 federal grant accrued in 2013 was received in cash in early 2014. Of the $100,000 in federal grants expected and accrued in 2014, $85,000 was received in cash.
4. Cash received for licenses and fines totaled $34,000.
5. Cash payments for general government and human services activities were $234,000 and $400,000, respectively. At the end of the year, the accounts payable balance was $15,000 and inventories totaled $18,000. Accounts payable and inventories relate only to general government activities. Inventories costing $6,000, relating to encumbrances outstanding at the beginning of the year, were received during 2014. $4,000 in inventory purchase orders were outstanding at the end of the year.
6. Transfers of $14,000 were made to the city's debt service fund. The city's community center enterprise fund paid back a $2,000 cash advance provided by the general fund in 2013. The general fund provided $5,000 to the capital projects fund for temporary financing of a project; this amount is expected to be paid back in 2015.
7. The general fund received a $25,000 cash advance from the city nursing home (an enterprise fund) to cover its cash deficit. It is expected to be, paid back next year.
The general fund uses the consumption method for inventory reporting, and the GAAP budgetary basis for year-end encumbrances.
Required
a. Prepare 2014 journal entries to record the above events in the general fund, and to close the books for the year.
b. Prepare the following financial statements for the City of Los Alvos general fund:
(1) Statement of revenues, expenditures, and changes in fund balances for the year 2014
(2) Balance sheet for the year ended December 31, 2014
(3) Budgetary comparison schedule for the year 2014.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...