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Journal Entries: Balances, Budgets and Taxes

The following transactions relate to the general fund of the City of Buffalo Falls for the year ended December 31, 2012:

1 Beginning balances were Cash, $150,000; Taxes receivable $200,000; Accounts Payable, $50,000; and Fund Balance, $300,000.
2 The budget was passed. Estimated revenues amounted to $2,000,000 and appropriations totaled $1,980,000. All expenditures are classified as General Government.
3 Property taxes levied in the amount of $1,200,000. All of the taxes are expected to be collected before February 2013.
4 Cash receipts totaled $1,200,000 from property taxes and $740,000 from other revenue.
5 Contracts were issued for contracted services in the amount of $900,000.
6 Contracted services were performed relating to $765,000 of the contracts with invoices amounting to $759,000.
7 Other expenditures amounted to $950,000.
8 Accounts payable were paid in the amount of $1,700,000.
9 The books were closed.

Prepare journal entries for transactions.

Solution Summary

The following posting helps with problems involving balances, budgets and taxes.