The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
1. Beginning balances were: Cash, $80,000; Taxes Receivable, $185,000; Accounts Payable, $50,000; and Fund Balance, $225,000.
2. The budget was passed. Estimated revenues amounted to $1,200,000 and appropriations totaled $1,196,000. All expenditures are classified as General Government.
3. Property taxes were levied in the amount of $902,000. All of the taxes are expected to be collected before February 2021.
4. Cash receipts totaled $870,000 for property taxes and $275,000 from other revenue.
5. Contracts were issued for contracted services in the amount of $90,000.
6. Contracted services were performed relating to $82,000 of the contracts with invoices amounting to $80,000.
7. Other expenditures amounted to $950,000.
8. Accounts payable were paid in the amount of $1,070,000.
9. The books were closed.
Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.
