Exercise 4-7 (Algo) The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2024: 1. Beginning balances were: Cash, $95,000, Taxes Receivable, $192,500; Accounts Payable, $53,750; and Fund Balance, $233,750. 2. The budget was passed. Estimated revenues amounted to $1,250,000 and appropriations totaled $1,247,000. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $925,000. All of the taxes are expected to be collected before February 2025. 4. Cash receipts totaled $895,000 for property taxes and $302,500 from other revenue. 5. Contracts were issued for contracted services in the amount of $98,750. 6. Contracted services were performed relating to $88,500 of the contracts with invoices amounting to $86,500. 7. Other expenditures amounted to $972,500. 8. Accounts payable were paid in the amount of $1,107,500. 9. The books were closed. Required: a. Prepare journal entries for the above transactions. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund. c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.
Exercise 4-7 (Algo) The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2024: 1. Beginning balances were: Cash, $95,000, Taxes Receivable, $192,500; Accounts Payable, $53,750; and Fund Balance, $233,750. 2. The budget was passed. Estimated revenues amounted to $1,250,000 and appropriations totaled $1,247,000. All expenditures are classified as General Government. 3. Property taxes were levied in the amount of $925,000. All of the taxes are expected to be collected before February 2025. 4. Cash receipts totaled $895,000 for property taxes and $302,500 from other revenue. 5. Contracts were issued for contracted services in the amount of $98,750. 6. Contracted services were performed relating to $88,500 of the contracts with invoices amounting to $86,500. 7. Other expenditures amounted to $972,500. 8. Accounts payable were paid in the amount of $1,107,500. 9. The books were closed. Required: a. Prepare journal entries for the above transactions. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund. c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 4-7 (Algo)
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2024:
1. Beginning balances were: Cash, $95,000, Taxes Receivable, $192,500; Accounts Payable, $53,750; and Fund Balance, $233,750.
2. The budget was passed. Estimated revenues amounted to $1,250,000 and appropriations totaled $1,247,000. All expenditures are
classified as General Government.
3. Property taxes were levied in the amount of $925,000. All of the taxes are expected to be collected before February 2025.
4. Cash receipts totaled $895,000 for property taxes and $302,500 from other revenue.
5. Contracts were issued for contracted services in the amount of $98,750.
6. Contracted services were performed relating to $88,500 of the contracts with invoices amounting to $86,500.
7. Other expenditures amounted to $972,500.
8. Accounts payable were paid in the amount of $1,107,500.
9. The books were closed.
Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding
encumbrances are committed by contractual obligation.
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