a.
33128-9-52P
Prepare the pre-closing
a.
33128-9-52P
![Check Mark](/static/check-mark.png)
Explanation of Solution
The trial balance is a workbook in which the balance of all ledgers is combined into the balances of the debit and credit account that are equal. The pre-closure trial balance includes balances of both temporary and permanent accounts.
The pre-closing trial balance for the General Fund of the City of Iron River is as follows:
Trial Balance | Debit ($) | Credit ($) |
Cash | ||
Receivables: | ||
Real estate and personal property | ||
Intergovernmental | ||
Payables | ||
Deferred revenues | ||
Fund balances: | ||
Assigned | ||
Unassigned | ||
Revenues—real estate taxes | ||
Intergovernmental revenues | ||
Expenditures—General government | ||
Expenditures—Public safety | ||
Expenditures—Education | ||
Expenditures—Public works | ||
Expenditures—Human services | ||
Expenditures—Debt principal payments | ||
Expenditures—Debt interest payments | ||
Other financing sources - proceeds from bonds | ||
Table (1)
b.
Prepare the
b.
![Check Mark](/static/check-mark.png)
Explanation of Solution
The General Fund is the main fund used by a government entity. The fund is used to monitor all capital inflows and outflows that are not affiliated with special purpose funds.
The balance sheet of government funds shows the finances of the government and the money and revenues it uses to provide services such as fire, police and sanitation. Short-term expenses are shown on the balance sheet to be close to those of the Government General Fund.
The balance sheet for the General fund of the City of Iron River is as follows:
CITY OF IRON RIVER | |||
Balance sheet | |||
Assets: | |||
Cash | $26,091 | ||
Receivables: | |||
Real Estate & Personal Property | 2,360 | ||
Intergovernmental | 22,337 | ||
Total Assets | $50,788 | ||
Liabilities: | |||
Payables | $4,011 | ||
Deferred Revenues | 24,570 | ||
Total Liabilities | 28,581 | ||
Fund Balances: | |||
Assigned | 6,480 | ||
Unassigned | 15,727 | ||
Total Fund Balances | $22,207 | ||
Total Liabilities and Fund Balances | $50,788 | ||
The statement of revenues, expenditures and changes in the balances of the funds is the declaration of income of the Government Funds, monitoring the flow of resources in and out.
The Statement of Revenues, Expenditures and Changes in Fund Balances for the General fund of the City of Iron River is as follows:
CITY OF IRON RIVER | |||||
Statement of Revenues, Expenditures and Changes in Fund Balances | |||||
Revenues: | |||||
Real Estate Taxes | $80,930 | ||||
Intergovernmental | $14,742 | ||||
Total revenues | $95,672 | ||||
Expenditures: | |||||
General Government | 15,227 | ||||
Public Safety | 9,181 | ||||
Education | 55,086 | ||||
Public Works | 4,590 | ||||
Human Services | 9,181 | ||||
Debt Principal payments | 700 | ||||
Debt Interest payments | 100 | ||||
Total expenditures | 94,065 | ||||
Excess (Deficiency) of revenues over expenditures | 1,607 | ||||
Other financing sources(uses): | |||||
Proceeds from bonds | 2,000 | ||||
Total Other Financing Sources (Uses) | 2,000 | ||||
Net change in fund balances | $3,607 | ||||
Fund Balance at beginning of the year | 18,600 | ||||
Fund Balance at the end of the year | $22,207 | ||||
Table (1)
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