Kilbourne County engaged in the following transactions in summary form during its fiscal year. All amounts are in millions. You need not be concerned with the category of funds balances to which reserves for encumbrances are classified on the fund balance sheet.Its commissioners approved a budget for the current fiscal year. It included total revenues of $860 and total appropriations of $850.It ordered office supplies for $20.It incurred the following costs, paying in cash. These items had not previously been encumbered.Salaries$610Repairs$ 40Rent$ 25Utilities$ 41Other operating costs$119It ordered equipment costing $9.It received the equipment and was billed for $10, rather than $9 as anticipated.It received the previously ordered supplies and was billed for the amount originally estimated. The county reports the receipt of supplies as expenditures; it does not maintain an inventory account for supplies.It earned and collected revenues of $865.Prepare closing entries as appropriate.

Appropriations…………………………………………………$850 Fund balance……………………………………………………$10 Estimated…

Answered: Kilbourne County engaged in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kilbourne County engaged in the following transactions in summary form during its fiscal year. All amounts are in millions. You need not be concerned with the category of funds balances to which reserves for encumbrances are classified on the fund balance sheet.

Its commissioners approved a budget for the current fiscal year. It included total revenues of $860 and total appropriations of $850.
It ordered office supplies for $20.
It incurred the following costs, paying in cash. These items had not previously been encumbered.

Salaries $610

Repairs $ 40

Rent $ 25

Utilities $ 41

Other operating costs $119
It ordered equipment costing $9.
It received the equipment and was billed for $10, rather than $9 as anticipated.
It received the previously ordered supplies and was billed for the amount originally estimated. The county reports the receipt of supplies as expenditures; it does not maintain an inventory account for supplies.
It earned and collected revenues of $865.
1. Prepare closing entries as appropriate.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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