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    Closing Entries and Balance Sheet for Lone Wolf

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    The preclosing trial balance at December 31, 20X1, for Lone Wolf's general fund follows.

    Debit Credit
    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
    Expenditures 1,140,000
    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
    Encumbrances 32,000
    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.

    Required
    a. Prepare the closing entries for the general fund.
    b. Prepare a general fund-only balance sheet at December 31, 20X1.

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    https://brainmass.com/business/financial-statements/246420

    Solution Summary

    This tutorial provides guidelines for creating closing entries and balance sheets.

    $2.19

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