General Fund Closing Entries and Statements

The balance sheet of the general fund of Ruby Valley on June 30, 20X1, follows:

RUBY VALLEY

Balance Sheet General Fund

June 30, 20X1
Assets
$103,000
Cash $ 80,000
Property Taxes Receivable-Delinquent
Less: Allowance for Uncollectibles-Delinquent (8,000) 72,000
Inventory of Supplies 11,000

Total Assets $186,000

Liabilities and Fund Balance

Vouchers Payable $ 42,000
Fund Balance:
Reserved for Encumbrances $ 18,000
Reserved for Inventories 11,000
Unreserved 115,000 44,000

Total Liabilities and Fund Balance $186,000

Budget and transaction information for fiscal 20X2 is as follows:

1. Estimated revenue:

Property taxes $1,280,500

Grants 100,000
Miscellaneous 40,000

The property tax levy was $1,300,000, of which uncollectible taxes were estimated at
1 percent.

2. Appropriations were $1,356,000 and estimated transfers out to internal service fund
were $25,000. Ruby Valley uses the nonlapsing method to account for encumbrances.
The appropriations included $50,000 for a new elevator.

3. Cash receipts were as follows:

Property taxes-delinquent $ 69,000

Property taxes-current 1,245,000

Grants from the state 90,000
Miscellaneous revenue 46,000
Transfer from capital projects fund 30,000
 The remaining property taxes from fiscal 20X1 were written off, and those
remaining from 20X2 were reclassified. The allowance for uncollectibles for
20X2 was reduced to $7,500.

4. The general fund issued purchase orders totaling $1,336,000 of which

$120,000 were outstanding at year-end. Actual expenditures were
$1,240,000, including $20,000 for 20X1 encumbrances, $27,000 for supplies,
and $45,000 for a new elevator. Vouchers paid totaled $1,227,000. The
supplies on hand June 30, 20X2, were $6,700. Ruby Valley uses the
consumption method to account for inventories.

5. Other cash payments and transfers were as follows:

Other financing use-Transfer out $ 25,000

Loan to the computer center 20,000

Required
a Prepare entries to summarize the general fund budget and transactions for
. fiscal 20X2.
b Prepare an unadjusted trial balance.
.
c Prepare adjusting and closing entries for the general fund.
.
d Prepare a balance sheet for the general fund as of June 30, 20X2.
.
e Prepare a statement of revenues, expenditures, and changes in fund balance
. for fiscal 20X2, for the general fund.