Question

2. Rowan City applied for and received a grant of $10,000 from the State to purchase computers for the public library. Record this transaction in the city's journals from the perspective of government-wide governmental activities and the perspective of the General Fund. For governmental activities: Date Account Name Debit Credit For the General Fund: Account Name Date Debit Credit 3. On the last day of the calendar year, the City of Cammieton borrowed $400,000 from the local bank as a short-term loan in anticipation of property tax collections in the month of January. The note is non-interest bearing, due in 30 days, and is discounted as a rate of 12% per year. Record this transaction from two perspectives: 1) from the governmental activities' perspective on the government-wide statements, and 2) from the General Fund perspective. (1) From the governmental activities' perspective: Date Account Name Debit Credit (2) From the General Fund perspective Date Account Name Credi Debit

can you post the journal entries and how you got them. thank you

Answer 1

	Soution 2
	For Government activities:
Date	Account Title & Explanation	Debit ($)	Credit ($)
	State Government	10000
	Cash		10000
	For general funds
Date	Account Title & Explanation	Debit ($)	Credit ($)
	State Government	10000
	Purchase computer for library		10000
	Solution 3
	From the Governmental activities perspective:
Date	Account Title & Explanation	Debit ($)	Credit ($)
Dec-31	Bank	396000
	Discount on Bank note (1% per month on $400000)	4000
	Bank note		400000
Dec-31	Discount on bank note	4000
	PL A/c		4000
	From General fund perspective:
Date	Account Title & Explanation	Debit ($)	Credit ($)
Jan-31	Property tax receivable	400000
	Revenues		400000