he following transactions relate to the General Fund of Fujairah for the year ended Dec. 31, 2020: Beginning balances were: Cash, $500,000; Taxes Receivable, $200,000; Accounts Payable, $300,000; and Fund Balance, $400,000. 1. The budget was passed. Estimated revenues amounted to $5,000,000 and appropriations totaled $3,500,000. Estimated other sources $500,000 and other uses also $500,000. 2. Contracts were issued for contracted services in the amount of $2,000,000. 3. Contracted services were performed relating to $2,000,000 of the contracts with invoices amounting to $1,800,000. 4. Taxes were levied in the amount of $2,500,000, of which 20% is expected to be uncollectible. 5. Cash receipts of $2,000,000 for taxes and $1,500,000 other revenue, and $600,000 other sources. 6. Other expenditures amounted to $1,500,000. 7. Paid $1,600,000 for accounts payable and $400,000 for other uses. Required: a. Prepare journal entries for the above transactions. b. Prepare a Statement of Revenues, Expenditures, and Changes for the General Fund. c. Prepare a Statement of Net Position for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation. d. Prepare the budgetary account schedule and explain the variances
The following transactions relate to the General Fund of Fujairah for the year ended Dec. 31, 2020:
Beginning balances were: Cash, $500,000; Taxes Receivable, $200,000; Accounts Payable, $300,000; and Fund Balance, $400,000.
1. The budget was passed. Estimated revenues amounted to $5,000,000 and appropriations totaled $3,500,000. Estimated other sources $500,000 and other uses also $500,000.
2. Contracts were issued for contracted services in the amount of $2,000,000.
3. Contracted services were performed relating to $2,000,000 of the contracts with invoices amounting to $1,800,000.
4. Taxes were levied in the amount of $2,500,000, of which 20% is expected to be uncollectible.
5. Cash receipts of $2,000,000 for taxes and $1,500,000 other revenue, and $600,000 other sources.
6. Other expenditures amounted to $1,500,000.
7. Paid $1,600,000 for accounts payable and $400,000 for other uses.
Required:
a. Prepare
b. Prepare a Statement of Revenues, Expenditures, and Changes for the General Fund.
c. Prepare a Statement of Net Position for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.
d. Prepare the budgetary account schedule and explain the variances
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
