1) The general ledger trial balance of the General Fund of the City of Bedford on January 1, 2015, shows the following:

Debit Credit

Cash $100,000

Taxes Receivable 75,000

Allowance for Uncollectible Taxes $35,000

Fund Balance-Assigned (encumbrances from 2014) 30,000

Fund Balance-Unassigned 110,000

Total $175,000 $175,000

A 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 Fairfield

The General Fund

Adjusted Trial Balance

December 31, 2015

Debit Credit

Cash $430,000

Property Tax Receivable 45,000

Estimated Uncollectible Taxes $ 20,000

Due from Trust Fund 50,000

Vouchers Payable 60,000

Fund Balance-Assigned (encumbrances) 30,000

Fund Balance-Unassigned 415,000

$525,000 $525,000

Transactions 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.