The Town of Amherst, NY finances its operations from revenues collected from property taxes, waste management fees, municipal court fines, and interest on investments. Amherst maintains only a general fund. The following information is available for the year ended December 31, 2013: 1. Following is the general fund trial balance on January 1, 2013: Dr (Cr) Investments $ 6,000,000 Cash 3,500,000 Waste management supplies 380,000 Accounts receivable-waste management 400,000 Fund balance-nonspendable (380,000) Fund balance-unassigned(9,900,000) Total$ 0 2. The budget for 2013, adopted by the town board, follows: Property taxes$2,700,000 Waste management costs6,700,000 Court costs1,150,000 Waste management revenues3,500,000 Court fines1,000,000 Salaries and operating expenditures750,000 Investment income250,000 Supplies expenditures350,000 Miscellaneous expenditures150,000 3. All property taxes were collected in cash. Waste management costs, all paid in cash, were $6,680,000. Court costs, all paid in cash, were $1,120,000. 4. Waste management revenues of $3,600,000 were billed during the year. All outstanding waste management bills on January 1, 2013, were collected during 2013. All 2013 billings were paid with the exception of $210,000, which were mailed to customers the last week of the year. 5. Court fines of $920,000 were collected in cash. Salaries and operating expenditures, all paid in cash, were $745,000. Investment income of $235,000 accumulates in the investments account until the investments mature. No investments matured in 2013. 6. Miscellaneous expenditures, all paid in cash, were $149,000. 7. Waste management supplies on hand at year-end were $40,000. The town uses the consumption method to report supplies. Required a. Prepare 2013 journal entries to record the above events and to close the books for the year. b. Prepare a statement of revenues, expenditures, and changes in fund balances and the balance sheet for 2013. View Solution:
The Town of Amherst NY finances its operations from revenues