On December 31, 2017, the Following Account Balances, Among Others

question 2

Essay

On December 31, 2017, the following account balances, among others, were included in the preclosing trial balance of the General Fund of the City of Springfield.
Estimated Revenue $2,960,000 (1) The balance in this account was $270,000 on January 1, 2017. Purchase orders outstanding on December 2017 total $530,000.
(2) Supplies on hand on December 31, 2017, amount to $380,000.
Required:
1. What was the balance in the Unreserved Fund Balance account on December 31, 2016? What was the total Fund Balance on December 31, 2016?
2. Prepare the necessary adjusting and closing entries for the year ended December 31, 2017. Springfield uses the purchase method to account for supplies.

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Definitions:

Industrial Fiber

Materials used in the production of goods in industries, often characterized by their strength and durability.

Refined Sugar

Processed sugar that has been purified and crystallized from raw sugar.

Materials Costs

The cost of raw materials and components that are used in the production of goods or services.

Processing Costs

Expenses related to the operations required to transform raw materials into finished products.