Entries, Balance Sheet, Statement of Revenues, Expenditures, and Changes in Fund Balance LO 8 The trial balance for the General Fund of the City of Monte Vista as of December 31, 2020, is presented here: Debit Credit Cash $300,000 Supplies Inventory 75,000 Fund Balance-Unassigned $300,000 Fund Balance-Nonspendable (supplies inventory) 75.000 $375,000 $375,000 Transactions of the General Fund for the year ended December 31, 2021, are summarized as follows: 1. The City Council adopted the following budget for 2021: Estimated revenue $1,600,000 Transfer from trust fund 50,000 Appropriations 1,530,000 Transfer to debt service fund 80,000 2. Property taxes of $1,500,000 were levied, of which it is estimated that $30,000 will not be collected. 3. Purchase orders in the amount of $1,400,000 were placed with suppliers and other vendors. 4. Property taxes in the amount of $1,450,000 were collected. 5. Cash was received from the Trust Fund in the amount of $50,000. 6. Invoices in the amount of $1,380,000 were approved for payment. The amount originally encumbered for these invoices was $1,360,000. The invoices included $25,000 net of trade-in allowance for the purchase of a new minicomputer and $400,000 for supplies. The City received a trade-in-allowance of $4,000 on its old minicomputer, which had been purchased three years earlier for $16,000. At the time the old minicomputer was purchased, it was estimated that it would have a useful life of four years. The new minicomputer is expected to last at least s years. The City of Monte Vista uses the purchase method to account for supplies inventory. 7. Licenses and fees in the amount of $48,000 were collected. 8. Vouchers in the amount of $1,300,000 were paid. 9. Cash in the amount of $80,000 was transferred to the Debt Service Fund. 10. Supplies on hand at the end of the year amount to $100,000.
Entries, Balance Sheet, Statement of Revenues, Expenditures, and Changes in Fund Balance LO 8 The trial balance for the General Fund of the City of Monte Vista as of December 31, 2020, is presented here: Debit Credit Cash $300,000 Supplies Inventory 75,000 Fund Balance-Unassigned $300,000 Fund Balance-Nonspendable (supplies inventory) 75.000 $375,000 $375,000 Transactions of the General Fund for the year ended December 31, 2021, are summarized as follows: 1. The City Council adopted the following budget for 2021: Estimated revenue $1,600,000 Transfer from trust fund 50,000 Appropriations 1,530,000 Transfer to debt service fund 80,000 2. Property taxes of $1,500,000 were levied, of which it is estimated that $30,000 will not be collected. 3. Purchase orders in the amount of $1,400,000 were placed with suppliers and other vendors. 4. Property taxes in the amount of $1,450,000 were collected. 5. Cash was received from the Trust Fund in the amount of $50,000. 6. Invoices in the amount of $1,380,000 were approved for payment. The amount originally encumbered for these invoices was $1,360,000. The invoices included $25,000 net of trade-in allowance for the purchase of a new minicomputer and $400,000 for supplies. The City received a trade-in-allowance of $4,000 on its old minicomputer, which had been purchased three years earlier for $16,000. At the time the old minicomputer was purchased, it was estimated that it would have a useful life of four years. The new minicomputer is expected to last at least s years. The City of Monte Vista uses the purchase method to account for supplies inventory. 7. Licenses and fees in the amount of $48,000 were collected. 8. Vouchers in the amount of $1,300,000 were paid. 9. Cash in the amount of $80,000 was transferred to the Debt Service Fund. 10. Supplies on hand at the end of the year amount to $100,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare the necessary closing entries for the General Fund for the year ended December 31, 2021.
Transcribed Image Text:PROBLEM 17-4
Entries, Balance Sheet, Statement of Revenues, Expenditures, and Changes in Fund Balance LO 8
The trial balance for the General Fund of the City of Monte Vista as of December 31, 2020, is presented here:
Debit
Credit
Cash
$300,000
Supplies Inventory
75,000
Fund Balance-Unassigned
$300,000
Fund Balance-Nonspendable (supplies inventory)
75.000
$375,000
$375,000
Transactions of the General Fund for the year ended December 31, 2021, are summarized as follows:
1. The City Council adopted the following budget for 2021:
Estimated revenue
$1,600,000
Transfer from trust fund
50,000
Appropriations
1,530,000
Transfer to debt service fund
80,000
2. Property taxes of $1,500,000 were levied, of which it is estimated that $30,000 will not be collected.
3. Purchase orders in the amount of $1,400,000 were placed with suppliers and other vendors.
4. Property taxes in the amount of $1,450,000 were collected.
5. Cash was received from the Trust Fund in the amount of $50,000.
6. Invoices in the amount of $1,380,000 were approved for payment. The amount originally encumbered for these invoices was $1,360,000. The invoices included $25,000 net of trade-in
allowance for the purchase of a new minicomputer and $400,000 for supplies. The City received a trade-in-allowance of $4,000 on its old minicomputer, which had been purchased three
years earlier for $16,000. At the time the old minicomputer was purchased, it was estimated that it would have a useful life of four years. The new minicomputer is expected to last at least six
years. The City of Monte Vista uses the purchase method to account for supplies inventory.
7. Licenses and fees in the amount of $48,00o were collected.
8. Vouchers in the amount of $1,300,000 were paid.
9. Cash in the amount of $80,000 was transferred to the Debt Service Fund.
10. Supplies on hand at the end of the year amount to $100,00o.
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