a) The journal entries for the transactions relating to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020, are as follows:
<h3>Journal Entries:</h3>
Debit Taxes Receivable $1,000,000
Credit Property Tax Revenue $1,000,000
Debit Other Revenues Receivable $400,000
Credit Other Revenue $400,000
Debit Cash $970,000
Credit Taxes Receivable $970,000
Debit Cash $340,000
Credit Other Revenues Receivable $340,000
Debit Contract Services $106,000
Credit Accounts Payable $106,000
Debit Other Expenditures $1,040,000
Credit Accounts Payable $1,040,000
Debit Accounts Payable $1,204,000
Credit Cash $1,204,000
b) The preparation of the Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund is as follows:
City of Buffalo Falls
<h3>Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund</h3>
For the year ended December 31, 2020
Property Tax Revenue $1,000,000
Other Revenue 400,000
Total Revenues $1,400,000
Expenditures:
Contract Services $106,000
Other Expenditures 1,040,000
Total expenditures $1,146,000
Changes in Fund Balance $254,000
c) The preparation of the Balance Sheet for the General Fund is as follows:
City of Buffalo Falls
<h3>Balance Sheet</h3>
As of December 31, 2020
Cash $216,000
Taxes Receivable 245,000
Other Revenues Receivable 60,000
Total Assets = $521,000
Accounts Payable $7,000
Fund Balance 514,000
Total liabilities + Fund balance $521,000
<h3>Data:</h3>
Beginning balances:
Cash, $110,000
Taxes Receivable, $215,000
Accounts Payable, $65,000
Fund Balance, $260,000
<h3>Budget:</h3>
Estimated revenues = $1,400,000
Estimated expenditures = $1,294,000
Estimated budget surplus = $106,000
<h3>Transaction Analysis:</h3>
Taxes Receivable $1,000,000 Property Tax Revenue $1,000,000
Other Revenues Receivable $400,000 Other Revenue $400,000
Cash $970,000 Taxes Receivable $970,000
Cash $340,000 Other Revenues Receivable $340,000
Contract Services $106,000 Accounts Payable $106,000
Other Expenditures $1,040,000 Accounts Payable $1,040,000
Accounts Payable $1,204,000 Cash $1,204,000
<h3>Accounts Balances:</h3>
Cash, $216,000 ($110,000 + $970,000 + $340,000 - $1,204,000)
Taxes Receivable, $245,000 ($215,000 + $1,000,000 - $970,000)
Other Revenues Receivable $60,000 ($400,000 - $340,000)
Accounts Payable, $7,000 ($65,000 + $106,000 + $1,040,000 - $1,204,000)
Fund Balance, $514,000 ($260,000 + $254,000)
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