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The Township of Hamlet finances its operations from revenues provided by property taxes, water distribution, fines levied by the municipal court, and interest on savings account. Hamlet maintains only a general fund. You were engaged to conduct the audit for the year ended December 31, 19X1 and determined the following:

General fund account balances on January 1, 19X1, were:

Cash in savings account	$62,030
Cash in checking account	$38,450
Cash on hand (undeposited water receipts)	$160
Waterworks Supplies	$3,640
Due from water customers	$3,670
Fund balance	$107,950

The budget for 19X1 adopted by the city commission and the transactions relating to the budget (with all current bills vouchered and paid on December 31, 19X1) for the year were:

	Budget	Transactions
Property Taxes	$26,750	$26,750
Waterworks costs	$66,500	$64,360*
City constable and court fees	$10,000	$9,550
Water Revenues	$30,000	$32,060**
Court Fines	$12,500	$11,025
Commissioners salaries and expenses	$6,000	$5,470
Interest on savings accounts	$2,000	$2,240
Miscellaneous expenses	$1,200	$2,610

*Cash expenditures

** Billings

The commissioners appropriated sufficient fund balance resources to balance the revenues and appropriations that were budgeted. The difference was caused by anticipated repairs to water mains. It was also necessary to transfer $15,000 from a savings account to a checking account to pay for these repairs during 19X1.

Your count of cash on December 31, 19X1, determined that there was $250 on hand that was not deposited until January 2, 19X2.

All billings for water during 19X1 were paid with the exception of statements that totaled $2,230, which were mailed to customers during the last week of December.

All waterworks supplies were consumed during the year on the repair of water mains. Hamlets charter specifies that appropriation expenditures are to be based on purchases.

Prepare journal entries for the above transactions. Prepare the closing entry. Prepare an operating statement and balance sheet.

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