Owner's equity is a. added to assets and the two are equal to ...

[michelleunicorn]

Owner's equity is
 a. added to assets and the two are equal to liabilities
  b. added to liabilities and the two are equal to assets
  c. subtracted from liabilities and the net amount is equal to assets
  d. equal to the total of assets and liabilities

Question 2

(Closing entries)
  The preclosing trial balance of the General Fund for the City of Thomaston shows the following balances at the end of its fiscal year.
 
  Budgetary fund balance  10,000
   Fund balance, beginning (actual) 150,000
   Estimated revenues 620,000
   Appropriations 610,000
   Revenues (actual) 625,000
   Expenditures 605,000
 
  Based on information presented above:
  a. Prepare closing entries for the budgetary and financial accounts.
  b. Calculate the ending fund balance for the city of Thomaston. (Show your work.)

[leannegxo]

Answer to Question 1

b

Answer to Question 2

a. Closing entries

Appropriations 610,000
Budgetary fund balance 10,000
Estimated revenues 620,000

Revenues 625,000
Expenditures 605,000
Fund balance 20,000

b. Revenues (actual)  625,000
Expenditures 605,000
Increase in fund balance 20,000
Fund balance, beginning 150,000
Fund balance, ending  170,000