The Following Information Is Provided About Some of the Town

question 89

Essay

The following information is provided about some of the Town of Truesdale's General Fund operating statement and budgetary accounts for the fiscal year ended June 30.
$\begin{array}{lr} & \$ 3,150,000 \\ \text { Estimated revenues } & 3,190,000 \\ \text { Revenues } & 3,185,000 \\ \text { Appropriations } & 3,175,000 \\ \text { Expenditures } & 400,000 \\ \text { Estimated other financing sources } & 20,000 \\ \text { Encumbrances } & 20,000 \\ \text { Encumbrances outstanding } & \text { (calculate) } \\ \text { Budgetary fund balance } & \end{array}$
The Town of Truesdale will honor all of its outstanding encumbrances in the next fiscal period. Prepare the journal entry(ies) to close budgetary accounts required to be closed at the fiscal year end using the information provided. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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Definitions:

Times Interest Earned Ratio

A metric used to measure a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Investment

The action or process of investing money for profit or material result.

Coupon Rate

A bond's annual interest yield, represented as a percentage of its principal amount.