Question

 The city council of Ongar approved the following budget for its General Fund on December 21,2013:

  

 The city has four property owners, whose tax assessments for FY 2014 are

  

 FY 2014 is the first year of operation for this city. As a result, there are not balances in the accounts as of January 1, 2014, Assume that the city uses encumbrances and a voucher system to record all expenditures, except for salaries.

 During 2014, the following transactions took place:

 a. FY 2014 tax bills were sent to the property owners.

 b. Ordered supplies expected to cost $20,000.

 c. The supplies arrived, along with an invoice for $19,000; the invoice was

 paid immediately.

 d. Paid salaries of $97,000 for the year.

 e. Ordered equipment costing $15,000.

 f. Collected property taxes for the year, in full, from all property owners. Collections of service charges were $33,000.

 g. Four motor scooters were ordered from a local dealer, who had submitted

 a bid for $10,000.

 h. Parking meters revenues for the year were $18,000., and receipts from the issuance of liquor licenses amounted to $2,000.

 i. Collections from fines and penalties were $9,000.

 j. The equipment ordered arrived, along with an invoice for 15,000; the invoice was paid immediately.

 k. The motor scooters arrived; because of an increase in their costs, the dealer asked the city to pay an additional $500 over the amount bid. Because of the political considerations, the city agreed to this additional cost and promptly issued a check for $10,500 to the dealer for the motor scooters, Before issuing the check, the city made a budgetary revision - it increased the appropriation for motor scooters by $500 and reduces the appropriation for supplies by the same amount.

 In lieu of requirement (a) you may

 1. Prepare journal entries

 2. Post to T-accounts

 3. Prepared Trial Balance

 4. Prepared Financial Statements:

 Balance Sheet

Answer 1

THE JOURNAL ENTRIES FOR THE CITY COUNCIL OF ONGAR FOR THE YEAR 2014 are properly described in attachment .