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Closing Entries and Balance Sheet for Lone Wolf

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.

Solution Summary

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

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