The preclosing trial balance at December 31, 20X1, for Lone Wolf's general fund follows.
Cash $ 90,000
Property Taxes Receivable---Delinquent 100,000
Allowance for Uncollectibles---Delinquent $ 72,000
Due from Other Funds 14,600
Vouchers Payable 65,000
Due to Other Funds 8,400
Fund Balance---Unreserved 119,000
Property Tax Revenue 1,130,000
Miscellaneous Revenue 40,000
Other Financing Uses---Transfer Out 25,000
Estimated Revenues Control 1,200,000
Appropriations Control 1,145,000
Estimated Other Financing Uses---Transfer Out 25,000
Budgetary Fund Balance---Reserved for Encumbrances 32,000
Budgetary Fund Balance---Unreserved 30,000
Total $ 2,601,600 $ 2,601,600
Lone Wolf uses the purchase method of accounting for inventories and the lapsing method of accounting for encumbrances.
a. Prepare the closing entries for the general fund.
b. Prepare a general fund-only balance sheet at December 31, 20X1.
This tutorial provides guidelines for creating closing entries and balance sheets.