Problem

Prepare the General Ledger journal entries for the General Fund for the Johnson County General Fund for the year ended December 31, 2012. Use abbreviations to save time, Expd= Expenditures, Est Rev=Estimated Revenues, Rev.= Revenue, etc.

On Jan. 1, 2012 the City of Jones has Cash of $1,000,000, Accounts Payable of $20,000 and Fund Balance of $980,000.

The budget was formally adopted. Estimated revenues are $10,100,000 and appropriations are estimated to be $9,690,000.

Revenues were received in cash the amount of $10,045,000.

Purchase orders were issued in the amount of $2,300,000.

Purchase orders were filled in the amount of $1,725,000. The invoice amount was $1,738,000.

Expenditures, not encumbered, amounted to $7,745,000. (not yet paid)

The invoices in entry 4 and 5 less 10% withheld are paid in cash.

The Town Council amended the original budget. The Estimated Revenues are increased $35,000 and the Appropriations are increased $100,000.

The closing entry for the year is recorded. Expenditures and Encumbrances are closed by a credit and a debit to Appropriations and the Estimated Revenues is closed by a credit and a debit to Revenues and the balance from the above entry is charged against Fund Balance.

1. Prepare a statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balance.

2. What is the ending cash balance? $____________

3. Prepare a Balance Sheet assuming the beginning balances and the entries through entry 7, the closing entry.