2 step process. Use the amounts in the preclosing trial balance
1. Close budgetary accounts by reversing the budget that was recorded at beginning of the year (estimated revenues, estimated other financing sources, Appropriations, estimated other financing uses, and budgetary fund balance)
2. Easy to Close
Close operating statement accounts (revenues, other financing sources, expenditures, and other financing uses and debit or credit fund balance as necessary.
Close encumbrances to fund balance
Every account that has an 'E' in it or 'to' in it is a credit