Problem 17-3 (Computing Unreserved Fund Balance and Closing Entries) The following account balances, among others, were included in the preclosing trial balance of the General Fund of the city of Madison on December 31, 2009.
Appropriations $3,488,000
Cash 270,000
Due to Other Fund 100,000
Due from Other Funds 250,000
Encumbrances 382,000
Estimated Revenue 3,720,000
Expenditures 3,020,000
Expenditures---2008 296,000
Reserve for Encumbrance 382,000
Reserve for Encumbrances---2008 310,000
Revenue 3,656,000
Taxes Receivable 600,000
Transfers from Other Funds 300,000
Transfers to Other Funds 520,000
Unreserved Fund Balance 422,000
Vouchers Payable 400,000
a. Prepare the necessary closing entries on December 31, 2009.
b. Calculate the amount of both the unreserved fund balance and the total fund balance in the balance sheet (1) on December 31, 2008 and (2) on December 31, 2009.
c. Prepare a schedule reconciling the December 31, 2008, total fund balance with the December 31, 2009, total fund balance by reference to actual inflows and outflow of financial resources
Click here for the solution: The following account balances, among others, were included in the preclosing trial balance of the General Fund of the city of Madison on December 31, 2009
