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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 11E
Related questions
Question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub