Chapter 9, Problem 52P

a.

33128-9-52P

To determine

Prepare the pre-closing trial balance for the General Fund of the City of Iron River.

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	$\$26,091$
Receivables:
Real estate and personal property	$2,360$
Intergovernmental	$22,337$
Payables		$\$4,011$
Deferred revenues		$24,570$
Fund balances:
Assigned		$6,480$
Unassigned		$12,120$
Revenues—real estate taxes		$80,930$
Intergovernmental revenues		$14,742$
Expenditures—General government	$15,227$
Expenditures—Public safety	$9,181$
Expenditures—Education	$55,086$
Expenditures—Public works	$4,590$
Expenditures—Human services	$9,181$
Expenditures—Debt principal payments	$700$
Expenditures—Debt interest payments	$100$
Other financing sources - proceeds from bonds		$2,000$
	$\underset{\_}{\underset{\_}{\$144,853}}$	$\underset{\_}{\underset{\_}{\$144,853}}$

Table (1)

b.

To determine

Prepare the balance sheet and the statement of revenues, expenditures, and changes in fund balances for the General fund of the City of Iron River.

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)