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Preparation of closing entries The Town of Munising reports the following trial balance after all entries have been made for the year: Cash Trial Balance Receivables: Real estate & personal property Intergovernmental Payables Deferred revenues Fund balances: DR CR $174,347 15,480 180,083 $18,319 176,085 Assigned Unassigned 46,440 86,860 Revenues-real estate taxes 580,765 Intergovernmental revenues 115,651 Expenditures-general government 108,694 Expenditures-public safety 65,797 Expenditures-education 394,783 Expenditures-public works 32,899 Expenditures-human services 65,797 Expenditures-debt principal payments 2,580 Expenditures-debt interest payments 860 Other financing sources-proceeds from bonds. 17,200 $1,041,320 $1,041,320 The Town's budget for the year, originally entered into the financial records, was as follows: ESTIMATED REVENUES 678,749 ESTIMATED OTHER FINANCING SOURCES APPROPRIATIONS BUDGETARY FUND BALANCE 17,200 (664,551) 31,398 In addition, the Town issued purchase orders for goods and services amounting to $8,704 that are outstanding at the end of the fiscal year. It intends to honor those purchase invoices. Prepare the appropriate closing entries for the year. Journal Entries Description Debit Credit APPROPRIATIONS 0 0 ESTIMATED REVENUES ÷ 686,416 0 BUDGETARY FUND BALANCE ÷ 0 686,416 ESTIMATED OTHER FINANCING SOURCES 0 0 Revenues-Real estate & personal property taxes 0 0 Revenues-Intergovernmental 0 0 ÷ 0 0 ÷ 0 0 Expenditures-general government Expenditures-public safety Expenditures-education Expenditures-public works Expenditures-human services Expenditures-debt principal payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Expenditures-debt interest payments To close out revenue & expenditure accounts. To close remaining encumbrances. ÷ 0 0 ÷ 0 0 = 0 0 ÷ 0 0 To reserve fund balance for encumbrances to be honored in following year.

Preparation of closing entries The Town of Munising reports the following trial balance after all entries have been made for the year: Cash Trial Balance Receivables: Real estate & personal property Intergovernmental Payables Deferred revenues Fund balances: DR CR $174,347 15,480 180,083 $18,319 176,085 Assigned Unassigned 46,440 86,860 Revenues-real estate taxes 580,765 Intergovernmental revenues 115,651 Expenditures-general government 108,694 Expenditures-public safety 65,797 Expenditures-education 394,783 Expenditures-public works 32,899 Expenditures-human services 65,797 Expenditures-debt principal payments 2,580 Expenditures-debt interest payments 860 Other financing sources-proceeds from bonds. 17,200 $1,041,320 $1,041,320 The Town's budget for the year, originally entered into the financial records, was as follows: ESTIMATED REVENUES 678,749 ESTIMATED OTHER FINANCING SOURCES APPROPRIATIONS BUDGETARY FUND BALANCE 17,200 (664,551) 31,398 In addition, the Town issued purchase orders for goods and services amounting to $8,704 that are outstanding at the end of the fiscal year. It intends to honor those purchase invoices. Prepare the appropriate closing entries for the year. Journal Entries Description Debit Credit APPROPRIATIONS 0 0 ESTIMATED REVENUES ÷ 686,416 0 BUDGETARY FUND BALANCE ÷ 0 686,416 ESTIMATED OTHER FINANCING SOURCES 0 0 Revenues-Real estate & personal property taxes 0 0 Revenues-Intergovernmental 0 0 ÷ 0 0 ÷ 0 0 Expenditures-general government Expenditures-public safety Expenditures-education Expenditures-public works Expenditures-human services Expenditures-debt principal payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Expenditures-debt interest payments To close out revenue & expenditure accounts. To close remaining encumbrances. ÷ 0 0 ÷ 0 0 = 0 0 ÷ 0 0 To reserve fund balance for encumbrances to be honored in following year.

FINANCIAL ACCOUNTING
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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Preparation of closing entries The Town of Munising reports the following trial balance after all entries have been made for the year: Cash Trial Balance Receivables: Real estate & personal property Intergovernmental Payables Deferred revenues Fund balances: DR CR $174,347 15,480 180,083 $18,319 176,085 Assigned Unassigned 46,440 86,860 Revenues-real estate taxes 580,765 Intergovernmental revenues 115,651 Expenditures-general government 108,694 Expenditures-public safety 65,797 Expenditures-education 394,783 Expenditures-public works 32,899 Expenditures-human services 65,797 Expenditures-debt principal payments 2,580 Expenditures-debt interest payments 860 Other financing sources-proceeds from bonds. 17,200 $1,041,320 $1,041,320 The Town's budget for the year, originally entered into the financial records, was as follows: ESTIMATED REVENUES 678,749 ESTIMATED OTHER FINANCING SOURCES APPROPRIATIONS BUDGETARY FUND BALANCE 17,200 (664,551) 31,398 In addition, the Town issued purchase orders for goods and services amounting to $8,704 that are outstanding at the end of the fiscal year. It intends to honor those purchase invoices. Prepare the appropriate closing entries for the year. Journal Entries Description Debit Credit APPROPRIATIONS 0 0 ESTIMATED REVENUES ÷ 686,416 0 BUDGETARY FUND BALANCE ÷ 0 686,416 ESTIMATED OTHER FINANCING SOURCES 0 0 Revenues-Real estate & personal property taxes 0 0 Revenues-Intergovernmental 0 0 ÷ 0 0 ÷ 0 0 Expenditures-general government Expenditures-public safety Expenditures-education Expenditures-public works Expenditures-human services Expenditures-debt principal payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Expenditures-debt interest payments To close out revenue & expenditure accounts. To close remaining encumbrances. ÷ 0 0 ÷ 0 0 = 0 0 ÷ 0 0 To reserve fund balance for encumbrances to be honored in following year.
Transcribed Image Text:Preparation of closing entries The Town of Munising reports the following trial balance after all entries have been made for the year: Cash Trial Balance Receivables: Real estate & personal property Intergovernmental Payables Deferred revenues Fund balances: DR CR $174,347 15,480 180,083 $18,319 176,085 Assigned Unassigned 46,440 86,860 Revenues-real estate taxes 580,765 Intergovernmental revenues 115,651 Expenditures-general government 108,694 Expenditures-public safety 65,797 Expenditures-education 394,783 Expenditures-public works 32,899 Expenditures-human services 65,797 Expenditures-debt principal payments 2,580 Expenditures-debt interest payments 860 Other financing sources-proceeds from bonds. 17,200 $1,041,320 $1,041,320 The Town's budget for the year, originally entered into the financial records, was as follows: ESTIMATED REVENUES 678,749 ESTIMATED OTHER FINANCING SOURCES APPROPRIATIONS BUDGETARY FUND BALANCE 17,200 (664,551) 31,398 In addition, the Town issued purchase orders for goods and services amounting to $8,704 that are outstanding at the end of the fiscal year. It intends to honor those purchase invoices. Prepare the appropriate closing entries for the year. Journal Entries Description Debit Credit APPROPRIATIONS 0 0 ESTIMATED REVENUES ÷ 686,416 0 BUDGETARY FUND BALANCE ÷ 0 686,416 ESTIMATED OTHER FINANCING SOURCES 0 0 Revenues-Real estate & personal property taxes 0 0 Revenues-Intergovernmental 0 0 ÷ 0 0 ÷ 0 0 Expenditures-general government Expenditures-public safety Expenditures-education Expenditures-public works Expenditures-human services Expenditures-debt principal payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Expenditures-debt interest payments To close out revenue & expenditure accounts. To close remaining encumbrances. ÷ 0 0 ÷ 0 0 = 0 0 ÷ 0 0 To reserve fund balance for encumbrances to be honored in following year.
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