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School District: Encumbrance Accounting System

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School District #25 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.

(a) Prepare the necessary closing entries.
(b) Prepare a balance sheet after closing.

Accounts Payable $ 75
Appropriations 885
Cash 258
Encumbrances 30
Estimated revenues 900
Expenditures 859
Fund balance 165
Reserve for encumbrances 30
Revenues 892

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Solution Summary

Attached is a fully formatted MS Excel spreadsheet, which provides the reader with clear instructions and detail for the creation of a balance sheet and closings entries for a school district that utilizes the encumbrance accounting system.

Solution Preview

Attached, please find a fully depicted closing journal and balance sheet for the School District #25 exercise that integrates the yearly budget into the schools accounting system utilizing the encumbrance system.

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Accounting 410

School District #25 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 ...

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