1) The general ledger trial balance of the General Fund of the City of Bedford on January 1, 2015, shows the following:Debit CreditCash $100,000Taxes Receivable 75,000Allowance for Uncollectible Taxes $ 35,000Fund Balanceâ€”Assigned (encumbrances from 2014) 30,000Fund Balanceâ€”Unassigned 110,000Total $175,000 $175,000A summary of activities and transactions for the General Fund during 2015 is presented here:1. The City Council adopted a budget for the General Fund with estimated revenues of $1,560,000 and authorization for appropriated expenditures of $1,400,000. The budget authorized the transfer of $50,000 from the Water Fund to the General Fund for operating expenses as a payment in lieu of taxes. Cash for the payment of interest due for the year on the $1,000,000, 8% bond issue for the Civic Center is approved for transfer from the General Fund to the Debt Service Fund.2. The annual property tax levy of 10% on assessed valuation ($11,000,000) is billed to property owners. Two percent is estimated to be uncollectible.3. Goods and services amounting to $1,150,000 were ordered during the year.4. Invoices for all goods ordered in 2014 amounting to $29,000 were approved for payment.5. Funds for bond interest on Civic Center bonds were transferred to the Debt Service Fund.6. Invoices for goods and services received during the year totaling $1,155,000 were recorded. These were encumbered previously [see (3) above].7. Transfer of funds from the Water Company was received in lieu of taxes.8. Taxes were collected from property owners in the amount of $1,050,000.9. Past-due tax bills of $17,000 were charged off as uncollectible.10. Checks in payment of invoices for goods and services ordered in 2014 and 2015 were issued [see items (4) and (6) above].11. Revenues received from miscellaneous sources, other than property taxes, of $455,000 were recorded.12. Purchase order for two trash collection vehicle systems complete with residence trash containers for automatic pickup of trash was issued. Bid price per system was $120,000.Required:A. Prepare journal entries to record the summary transactions. You may find it necessary or convenient to post journal entries to ledger t-accounts before the preparation of the required trial balances.B. Prepare a pre-closing trial balance.C. Prepare closing entries.D. Prepare a post-closing trial balance.2) The trial balance for the General Fund of the City of Fairfield as of December 31, 2015, is presented here:City of FairfieldThe General FundAdjusted Trial BalanceDecember 31, 2015Debit CreditCash $430,000Property Tax Receivable 45,000Estimated Uncollectible Taxes $ 20,000Due from Trust Fund 50,000Vouchers Payable 60,000Fund Balanceâ€”Assigned (encumbrances) 30,000Fund Balanceâ€”Unassigned 415,000$525,000 $525,000Transactions for the year ended December 31, 2016, are summarized as follows:1. The City Council adopted a budget for the year with estimated revenue of $735,000 and appropriations of $700,000.2. Property taxes in the amount of $590,000 were levied for the current year. It is estimated that $24,000 of the taxes levied will prove to be uncollectible.3. Proceeds from the sale of equipment in the amount of $35,000 were received by the General Fund. The equipment was purchased 10 years ago with resources of the General Fund at a cost of $150,000. On the date of purchase, it was estimated that the equipment had a useful life of 15 years.4. Licenses and fees in the amount of $110,000 were collected.5. The total amount of encumbrances against fund resources for the year was $642,500.6. Vouchers in the amount of $455,000 were authorized for payment. This was $15,000 less than the amount originally encumbered for these purchases.7. An invoice in the amount of $28,000 was received for goods ordered in 2015. The invoice was approved for payment.8. Property taxes in the amount of $570,000 were collected.9. Vouchers in the amount of $475,000 were paid.10. Fifty thousand dollars was transferred to the General Fund from the Trust Fund.11. The City Council authorized the write-off of $30,000 in uncollected property taxes.Required:A. Prepare entries in general journal form to record the transactions for the year ended December 31, 2016.B. Prepare a pre-closing trial balance for the General Fund as of December 31, 2016.C. Prepare the necessary closing entries for the year ended December 31, 2016.D. Prepare a balance sheet and a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31, 2016.
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