Q3. The city council of E. Staatsboro approved the following budget for the Gene

Q3. The city council of E. Staatsboro approved the following budget for the General Fund for fiscal year 2013:
Estimated Revenues
Property taxes.. $335,000
License fees… 40,000
Fines and penalties .15,000
Total revenues .$390,000
Appropriations
Salaries. $350,000
Supplies and utilities. 30,000
Debt service. 3,000
Total appropriations.. 383,000
Budgeted Increase in Fund Balance $ 7,000
The post-closing trial balance for the fund, as of December 31, 2012, was as follows:
Debits
Credits
Cash
$ 15,000
$ 8,000
Vouchers payable
7,000
Fund balance (unassigned)
$15,000
$15,000
The following transactions and events occurred during FY 2013:
1. Levied property taxes of $335,000 and mailed tax bills to property owners.
2. Borrowed $300,000 on tax anticipation notes at an interest rate of 1 percent per annum.
3. Ordered supplies expected to cost $18,000.
4. Received the supplies along with an invoice for $19,000; paid the invoice immediately.
5. Received cash ($383,000) from the following sources: property taxes ($330,000), licenses and fees ($38,000), fines and penalties ($15,000).
6. Paid cash for the following purposes: unpaid vouchers at the start of year ($8,000), salaries ($340,000), utility bills ($11,000).
7. Repaid the tax anticipation notes 6 months after the date of borrowing, with interest.
8. Processed a budgetary interchange, increasing the appropriation for supplies and utilities by $2,000 and reducing the appropriation for salaries by a like amount.
9. Will pay salaries for the last few days in December, amounting to $2,000, at the end of the first pay period in January 2014; also, received in early January 2014 a utilities invoice for $1,000 applicable to December 2013.
Use the preceding information to do the following.
a. Prepare journal entries to record the budget and the listed transactions and events.
b. Prepare a pre-closing trial balance.
c. Prepare a balance sheet; a statement of revenues, expenditures, and changes in fund balance.
d. Prepare closing journal entries.