Integrating the budget into the accounting system

Question

Problem:

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.

(a) Prepare the necessary closing entries.

(b) Prepare a balance sheet after closing.

Accounts Payable                $ 75
Appropriations                     885
Cash                                   258
Encumbrances                      30
Estimated revenues             900
Expenditures                       859
Fund balance                      165
Reserve for encumbrances    30
Revenues                           892