Governmental and Nonprofit Accounting Worksheet I Case: The town of Newhaven earmarked part of its property tax levy for a general recreation program. The town’s general fund will also contribute to the effort.The following transactions occurred in the fund that accounts for the program activities during the 2012 budget year.The town council adopted the following budget for its specials revenue fundEstimated revenue ----------------------------------------------------$.57,000Estimated transfer in GF-----------------------------------------------$.7,000Appropriation ----------------------------------------------------------$. 60,000Following a statewide revaluation of properties, estimated revenues were increased by $5,200 spiraling inflation also lead the council to increase the appropriation by $7,000The general fund contributed $.8,000 cash to the fund's activityProjected revenues were accurate and the amounts were received in cash.Expenditures all previously encumbered amounted to $. 59,000. In addition by $.1,000 encumbered supplies were not received before a year. The expenditures are paid.The budgetary and nominal accounts were closed.Required:Prepare necessary journal entries including closing entries.Prepare the statement of revenue, Expenditure, and changes in fund balancePrepare balance sheet on June 30, 2012.

Answered: Prepare necessary journal entries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Governmental and Nonprofit Accounting Worksheet I

Case: The town of Newhaven earmarked part of its property tax levy for a general recreation program. The town’s general fund will also contribute to the effort.

The following transactions occurred in the fund that accounts for the program activities during the 2012 budget year.

The town council adopted the following budget for its specials revenue fund

Estimated revenue ----------------------------------------------------$.57,000

Estimated transfer in GF-----------------------------------------------$.7,000

Appropriation ----------------------------------------------------------$. 60,000

Following a statewide revaluation of properties, estimated revenues were increased by $5,200 spiraling inflation also lead the council to increase the appropriation by $7,000
The general fund contributed $.8,000 cash to the fund's activity
Projected revenues were accurate and the amounts were received in cash.
Expenditures all previously encumbered amounted to $. 59,000. In addition by $.1,000 encumbered supplies were not received before a year. The expenditures are paid.
The budgetary and nominal accounts were closed.

Required:

Prepare necessary journal entries including closing entries.
Prepare the statement of revenue, Expenditure, and changes in fund balance
Prepare balance sheet on June 30, 2012.

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