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, 2013.
|
Appropriations |
$3,488,000 |
|
Cash |
270,000 |
|
Due to Other Funds |
100,000 |
|
Due from Other Funds |
250,000 |
|
Encumbrances |
382,000 |
|
Estimated Revenue |
3,720,000 |
|
Expenditures |
3,020,000 |
|
Expenditures -2012 |
296,000 |
|
Reserve for Encumbrances |
382,000 |
|
Reserve for Encumbrances-2012 |
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 |
Required:
- Prepare the necessary closing entries on December 31, 2013.
- Calculate the amount of both the unreserved fund balance and the total fund balance in the balance sheet (1) on December 31, 2012 and (2) on December 31, 2013.
- Prepare a schedule reconciling the December 31, 2012, total fund balance with the December 31, 2013, total fund balance by reference to actual inflows and outflows of financial resources.