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17	[4-a-17]	Closing Entry Following the instructions in the next paragraph, prepare and post the
	necessary entries to close the Estimated Revenues and Appropriations accounts to
	Budgetary Fund Balance, and Revenues and Expenditures to Fund BalanceUnassigned.
	Because the City of Corvallis honors all outstanding encumbrances at year-end, it is not
	necessary to close Encumbrances to Encumbrances Outstanding at year-end since
	encumbrances do not affect the General Fund (GF) balance sheet or statement of revenues,
	expenditures, and changes in fund balances. If, however, you would like to avoid having
	these accounts appear in the post-closing trial balance, you can opt to close
	Encumbrances to Encumbrances Outstanding. If the accounts are closed, they would
	need to be reestablished at the beginning of the next year, although entries are not
	required in this problem for the next year.
	To close the temporary accounts (revenues, expenditures, other financing sources
	& uses and budgetary accounts), you must select "Yes" in the [Closing Entry] column.
	To determine the closing amounts for these temporary accounts, see the Preclosing TB
	column of the Trial Balance out to the right of the ledger.
	At year-end, an analysis by the citys finance department determined the following
	constraints on resources in the General Fund (GF). Prepare the appropriate journal entry in the
	General Fund (GF) to reclassify amounts between Fund BalanceUnassigned and the fund
	balance accounts corresponding to the constraints shown below. (Note: You should
	consider the beginning of year balances in fund balance accounts in calculating the
	amounts to be reclassified.) In other words, you need to adjust these fund balances to the
	balances shown here, using the Fund Balance-Unassigned account for your balancing entry:
	Account				Amount
	Fund BalanceRestrictedPublic Safety				$ 13,400
	Fund BalanceCommittedPublic Works				26,400
	Fund BalanceAssignedCulture & Recreation				50,600
	See "Reclassification of Fund Balances" section in the textbook on page 137 for an example.

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