Q3. The city council of E. Staatsboro approved the following budget for the General Fund for fiscal year 2013:

Estimated Revenues

Property taxes.. $335,000

License fees… 40,000

Fines and penalties .15,000

Total revenues .$390,000

Appropriations

Salaries. $350,000

Supplies and utilities. 30,000

Debt service. 3,000

Total appropriations.. 383,000

Budgeted Increase in Fund Balance $ 7,000

The post-closing trial balance for the fund, as of December 31, 2012, was as follows:

Debits

Credits

Cash

$ 15,000

$ 8,000

Vouchers payable

7,000

Fund balance (unassigned)

$15,000

$15,000

The following transactions and events occurred during FY 2013:

1. Levied property taxes of $335,000 and mailed tax bills to property owners.

2. Borrowed $300,000 on tax anticipation notes at an interest rate of 1 percent per annum.

3. Ordered supplies expected to cost $18,000.

4. Received the supplies along with an invoice for $19,000; paid the invoice immediately.

5. Received cash ($383,000) from the following sources: property taxes ($330,000), licenses and fees ($38,000), fines and penalties ($15,000).

6. Paid cash for the following purposes: unpaid vouchers at the start of year ($8,000), salaries ($340,000), utility bills ($11,000).

7. Repaid the tax anticipation notes 6 months after the date of borrowing, with interest.

8. Processed a budgetary interchange, increasing the appropriation for supplies and utilities by $2,000 and reducing the appropriation for salaries by a like amount.

9. Will pay salaries for the last few days in December, amounting to $2,000, at the end of the first pay period in January 2014; also, received in early January 2014 a utilities invoice for $1,000 applicable to December 2013.

Use the preceding information to do the following.

a. Prepare journal entries to record the budget and the listed transactions and events.

b. Prepare a pre-closing trial balance.

c. Prepare a balance sheet; a statement of revenues, expenditures, and changes in fund balance.

d. Prepare closing journal entries.