Question

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2017:

1. Beginning balances were: Cash, $93,000; Taxes Receivable, $189,500; Accounts Payable, $52,250; and Fund Balance, $230,250.
2. The budget was passed. Estimated revenues amounted to $1,230,000 and appropriations totaled $1,227,400. All expenditures are classified as General Government.
3. Property taxes were levied in the amount of $915,000. All of the taxes are expected to be collected before February 2018.
4. Cash receipts totaled $885,000 for property taxes and $297,500 from other revenue.
5. Contracts were issued for contracted services in the amount of $95,250.
6. Contracted services were performed relating to $85,500 of the contracts with invoices amounting to $83,900.
7. Other expenditures amounted to $963,500.
8. Accounts payable were paid in the amount of $1,092,500.
9. The books were closed.

Prepare a journal entry: Beginning balances were: Cash, $93,000; Taxes Receivable, $189,500; Accounts Payable, $52,250; and Fund Balance, $230,250.

Answer 1

ANSWER

	Journal Entries	$
Date	Particulars	Debit	Credit
31/12/2017	Debit Tax Receivable	297,500
	Credit Revenue (other than property tax)		297,500
	(To be record total tax revenue for the year)
31/12/2017	Debit Tax Receivable	885,000
	Credit Property Tax Revenue		885,000
	(To be record property tax income for the year )
31/12/2017	Debit Cash	1,182,500
	Credit Tax Receivable		1,182,500
	(To be record receipt of cash )
31/12/2017	Debit contracted services	83,900
	Credit Accounts Payable		83,900
	(To be record the invoice of contracted services )
31/12/2017	Debit other expenses	963,500
	Credit Accounts Payable		963,500
	(To be record other expenses for the year )
31/12/2015	Debit Accounts Payable	1,092,500
	Credit Cash		1,092,500
	(To be record payment of cash)
		$

_____________________________________________

If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.

*****************THANK YOU**************