School District #25 Formally Integrates the Budget into the Accounting

question 63

Essay

School District #25 formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At year-end, before closing entries, the district had the following balances in its accounts. All accounts had normal balances.
REQUIRED: (a) Prepare the necessary closing entries.
(b) Prepare a balance sheet after closing.

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Definitions:

Mandatory Arbitration Clause

A provision in a contract requiring the parties to resolve disputes through arbitration, rather than through litigation.

Waived

Means voluntarily giving up a known right, claim, or privilege.

Right to Sue

The legal authority granted to an individual or entity to bring a lawsuit against another party.

Neutral Third Party

An unbiased individual or group engaged to mediate or arbitrate between conflicting parties.