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1. The City of Smithburg approved its budget for the upcoming year and engages in the following transactions. On the accompanying journal paper, enter the appropriate journal entries for the city for its fiscal year. Smithburg only records encumbrances for its Supplies appropriation.

a. Smithburg adopted the following budget for the year: Revenues: Property taxes $275,000 Licenses and fees 35,000 Appropriations: Salaries 255,000 Supplies 40,000 Interest 1,500

b. Property tax bills amounting to $275,000 were sent to the property owners.

c. Because property taxes were not due to be received for several months and the town needed cash to finance its activities, Smithburg borrowed $100,000 on tax anticipation notes from a local bank.

d. Smithburg paid salaries in the amount of $75,000.

e. The city sent out two purchase orders for supplies: purchase order A for $6,000 and purchase order B for $5,000.

f. The city received $130,000 from property owners in payment of their property taxes.

g. Smithburg repaid the bank on its borrowing in transaction c. The amount paid was $101,000, which included interest of $1,000.

h. The city collected $15,000 for fishing licenses.

i. The town received the supplies ordered on purchase order A in transaction e. All the supplies arrived in good condition and the invoice for $6,100 was approved for payment.

j. The town Treasurer paid the invoice in transaction I for $6,100.

GENERAL JOURNAL Page

Date		Description of entry	Post Ref	Debit		Credit

The City of Reiver Estates has reached the end of its fiscal year. Following is the adjusted trial balance for the end of that fiscal year. From this trial balance, prepare in proper form the following items: a. The closing entries b. The statement of revenues, expenditures, and changes in fund balance for the year c. The balance sheet on June 30 of the current year

City of Reiver Estates General Fund Adjusted Trial Balance June 30, 20XX

Cash	$ 6,200
Taxes receivable	40,000
Investments	65,000
Vouchers payable		$ 38,750
Tax anticipation notes payable		12,750
Unreserved fund balance		57,000
Estimated revenues	101,000
Appropriations		99,000
Budgetary fund balance		2,000
Revenues taxes		100,000
Revenues other		2,080
Expenditures personal services	94,700
Expenditures - supplies	4,680
	$ 311,580	$ 311,580

a. Closing entries

GENERAL JOURNAL Page

Date		Description of entry	Post Ref	Debit		Credit

Statement of revenues, expenditures and changes in fund balance

Balance sheet

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