Chapter 9, Problem 53P

To determine

Prepare the required journal entries to record the given transactions in the general fund for the City, J H.

Explanation of Solution

A government entity uses the General Fund as the main fund. The fund is used to monitor all inflows and outflows of capital which are not affiliated with special purpose funds.

The required journal entries in the general fund for the City, J H are as follows:

Date	Account title and Explanation	Post Ref	Debit ($)	Credit ($)
a.	Estimated revenues A/c		$\$181,526$
	Estimated other financing sources		$\$4,600$
	Appropriations			$\$177,729$
	Budgetary fund balance			$\$8,397$
	(To record the budget)
b.	Cash A/c		$\$4,600$
	Receivables—real estate & personal property taxes		$\$156,975$
	Receivables—intergovernmental revenues		$\$28,256$
	Revenues— real estate & personal property taxes			$\$156,975$
	Revenues—intergovernmental			$\$28,256$
	Other financing sources—bond proceeds			$\$4,600$
	(To record revenues and other financing sources)
c.	Encumbrances		$\$175,969$
	Budgetary fund balance			$\$175,969$
	(To record the issuance of purchase invoices)
d.	Budgetary fund balance		$\$175,969$
	Encumbrances			$\$175,969$
	(To reverse previous Encumbrance journal entry)
	Expenditures—general government		$\$26,396$
	Expenditures—public safety		$\$17,597$
	Expenditures—education		$\$105,581$
	Expenditures—public works		$\$8,798$
	Expenditures—human services		$\$17,597$
	Payables A/c			$\$175,969$
	(To record expenditures)
e.	Expenditures—debt principal		$\$690$
	Expenditures—debt interest		$\$230$
	Cash A/c			$\$920$
	(To record debt payments)
f.	Cash A/c		$\$10,678$
	Payables		$\$172,450$
	Receivables—real estate & personal property taxes			$\$156,285$
	Receivables—intergovernmental revenues			$\$26,843$
	(To record collection of receivables and payment of payables)
g.	Revenues A/c		$\$2,243$
	Deferred revenues A/c			$\$2,243$
	(Deferral of revenues)

Table (1)

The required closing entries in the general fund for the City, J H are as follows:

Date	Account title and Explanation	Post Ref	Debit ($)	Credit ($)
h.	Appropriations A/c		$\$177,729$
	Budgetary fund balance		$\$8,397$
	Estimated revenues			$\$181,526$
	Estimated other financing sources			$\$4,600$
	(To reverse budget entry)
	Revenues—Real Estate & personal Property Taxes		$\$154,732$
	Revenues—Intergovernmental		$\$28,256$
	Other Financing Sources—Bond Proceeds		$\$4,600$
	Expenditures—General Government			$\$26,396$
	Expenditures—Public Safety			$\$17,597$
	Expenditures—Education			$\$105,581$
	Expenditures—Public Works			$\$8,798$
	Expenditures—Human Services			$\$17,597$
	Expenditures—Debt Principal			$\$690$
	Expenditures—Debt Interest			$\$230$
	Fund Balance—Unreserved			$\$10,699$
	(To close out revenue and expenditure accounts)
	Budgetary fund balance		$\$2,070$
	Encumbrances			$\$2,070$
	Fund balance - unassigned		$\$2,070$
	Fund balance—Assigned			$\$2,070$
	(To close remaining encumbrances and reserve Fund Balance for encumbrances that lapsed, but are expected to be honored in the following year)

Table (2)