Question

he ledger of the General Fund of the City of New Elisa shows the following balances at the end of its fiscal year. Prepare closing journal entries for these budgetary and financial accounts. Estimated revenues $300,000 Appropriations 305,000 Budgetary fund balance 5,000 Revenues 300,000 Expenditures 285,000 Description Debit Credit Answer Answer Answer Answer Answer Answer Answer Answer Answer To close budgetary accounts. Answer Answer Answer Answer Answer Answer Answer Answer Answer To close financial accounts.

Answer 1

Answer and Explanation:

The closing journal entries are shown below:

1. Appropriations Dr $305,000

        To Estimated revenues $300,000

         To BUdgteary fund balance $5,000

(Being budgetary accounts are closed),

2. Revenues Dr $300,000

         To Expenditures $285,000

          To Fund balance $15,000

(Being the financial accounts are closed)