Following are a number of events relating to the City of Maxwell (all amounts in
ID: 2479315 • Letter: F
Question
Following are a number of events relating to the City of Maxwell (all amounts in $1,000s).
1. The City recognizes an increase of $292 in Deferred Revenues as a year-end adjustment to yield a balance in that account of the total property taxes receivable that are not expected to be collected within 60 days.
2. The City makes the required closing entries to close out the budgetary and operating accounts. In addition, the City closes out the remaining $460 balance of budgetary ENCUMBRANCES outstanding and formally charges that balance to Fund Balance – unassigned since the outstanding invoices are expected to be honored in the next fiscal year.
Required: Prepare journal entries in the General Fund for each of the events presented above.
Explanation / Answer
1) Accounts Receivable A/c Dr. 292
To Deferred revenue A/c 292
(being increase in deffered revenue recognized)
2) outstanding balance fund A/c Dr.460
To General Fund A/c 460