The adjusted trial balance for White Rabbit for the fiscal year ended June 30, 20X1, is presented
below.
Cash
Prop Taxes Receivable
Debits
Credits
2,000
30,000
Allowance for Uncollectible Taxes
2,000
Vouchers Payable
4,000
Due to Internal Service Fund
3,000
Fund Balance, Assigned for Encumbrances
1,000
Fund Balance, Unassigned
11,000
Expenditures
136,000
Transfer in from Debt Service Fund
2,000
Prop Tax Revenues
145,000
APPROPRIATIONS CONTROL
140,000
ESTIMATED REVENUE CONTROL
150,000
BUDGETARY FUND BALANCE, UNASSIGNED
10,000
Totals
318,000
318,000
Required:
a. Prepare a statement of revenues, expenditures, and changed in fund balance for White Rabbit
for the year ended June 30, 20X1. Assume there were no supplies or outstanding encumbrances
at the beginning of the year.
b. Prepare a balance sheet for White Rabbit at June 30, 20X1.
c. What is the amount of the governmental spending authority left at end of year?
d. Is the variance with the budget favorable or unfavorable?
e. Assume that on the last day of the fiscal year, a purchase order for $10,000 was received. How
would this be accounted for? Would any of the year-end financial statements change?
Remember: the last 3 accounts on the above are budgetary accounts!
