The City of Morganville Had the Following Preclosing Account Balances

Essay

The City of Morganville had the following preclosing account balances in its General Fund as of April 30,2014.Debits and credits are not separated; each account had its "normal" balance.Among the expenditures recorded this year is an amount expended on supplies ordered at the end of the previous year.Assume that encumbrances do not lapse and that the City failed to make the journal entry(s)necessary to re-establish the encumbrance in the current year.
Required:
(a)Prepare all entries necessary to close the General Fund of the City of Morganville.
(b)Prepare a Statement of Revenues,Expenditures,and Changes in Fund Balance for the General Fund for the City of Morganville for the Year Ended April 30,2014.End with the ending fund balance.This is the GAAP operating statement.