County formally integrates the budget into the accounting system and uses the en
ID: 2541297 • Letter: C
Question
County formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At year-end, before closing entries, the district had the following balances in its accounts. All accounts had normal balances. [Fund balance – unassigned is the balance after recording the budgetary entry but before reversing the budgetary entry].
Accounts Payable $ 187
Appropriations 2,958
Cash 998
Encumbrances 758
Estimated revenues 3,000
Expenditures 2,985
Fund balance – unassigned 630
Inventory 13
Grants receivable 125
Other financing sources 515
Other financing uses 9
Reserve for encumbrances 758
Revenues 2,962
Sales tax receivable 122
(a) Prepare a statement of revenues, expenditures, and changes in fund balances [4 points]
(b) Prepare a balance sheet (post-closing
Explanation / Answer
Balance Sheet
Sr. No Particular L.F. Debit Credit 1 Estimate Revenue Dr. 3000 Other finance source Dr. 515 To Appropriations 2958 To Other finance use 9 Budgetary fund balance 548 2. Expenditure Dr. 2985 To Payable 2985 3.