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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 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 ...

    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.

    $2.19