39. Prepare journal entries for a local government to record the
following transactions, first for fund
financial statements and then for government-wide financial
statements.
a. The government sells $900,000 in bonds at face value to finance
construction of a warehouse.
b. A $1.1 million contract is signed for construction of the
warehouse. The commitment is required,
if allowed.
c. A $130,000 transfer of unrestricted funds was made for the
eventual payment of the debt in (a).
d. Equipment for the fire department is received with a cost of
$12,000. When it was ordered, an
anticipated cost of $11,800 had been recorded.
e. Supplies to be used in the schools are bought for $2,000 cash.
The consumption method is used.
f. A state grant of $90,000 is awarded to supplement police
salaries. The money will be paid to
reimburse the government after the supplement payments have been
made to the police officers.
g. Property tax assessments are mailed to citizens of the
government. The total assessment
is $600,000, although officials anticipate that 4 percent will
never be collected. There is an
enforceable legal claim for this money and the government can use
it immediately.
1 | General Journal | Debit | Credit |
a. | Capital Projects Fund | ||
Cash | $900,000 | ||
Other Financing Sources - Bonds Proceeds | $900,000 | ||
b. | Capital Projects Fund | ||
Encumbrances | $1,100,000 | ||
Fund Balance - Reserved for Encumbrances | $1,100,000 | ||
c. | General Fund | ||
Other Financing Uses - Transfers Out | $130,000 | ||
Cash | $130,000 | ||
Debt Service Fund | |||
Cash | $130,000 | ||
Other Financing Uses - Transfers In | $130,000 | ||
d. | General Fund | ||
Fund Balance - Reserved for Encumbrances | $11,800 | ||
Encumbrances | $11,800 | ||
Expenditures Control - Machinery and Equipment | $12,000 | ||
Vouchers Payable | $12,000 | ||
e. | General Fund | ||
Inventory of supplies | $2,000 | ||
Cash | $2,000 | ||
f. | Special Revenue Fund | ||
Cash | $90,000 | ||
Deferred Revenue | $90,000 | ||
g. | General Fund | ||
Taxes Receivable | $600,000 | ||
Revenues- Property Taxes | $576,000 | ||
Allowance for Uncollectible | $24,000 | ||
1 | General Journal | Debit | Credit |
a. | Cash | $900,000 | |
Bonds Payable | $900,000 | ||
b. | No Journal Entry Required | ||
c. | No Journal Entry Required | ||
d. | Machinery and Equipment | $12,000 | |
Vouchers or Accounts Payable | $12,000 | ||
e. | Inventory of supplies | $2,000 | |
Cash | $2,000 | ||
f. | Cash | $90,000 | |
Deferred Revenue | $90,000 | ||
g. | Taxes Receivable | $600,000 | |
Revenues- Property Taxes | $576,000 | ||
Allowance for Uncollectible | $24,000 | ||
39. Prepare journal entries for a local government to record the following transactions, first for fund...
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. a. The government sells $992,000 in bonds at face value to finance construction of a warehouse. b. A $1.14 million contract is signed for construction of the warehouse. The commitment is required if allowed. C. A $164,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a). d. Equipment for the fire...
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. a. The government sells $1,098,000 in bonds at face value to finance construction of a warehouse. b. A $1.18 million contract is signed for construction of the warehouse. The commitment is required if allowed. c. A $210,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a) d. Equipment for the fire...
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. The government sells $992,000 in bonds at face value to finance construction of a warehouse. A $1.14 million contract is signed for construction of the warehouse. The commitment is required if allowed. A $164,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a). Equipment for the fire department is received with...
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. The government sells $1,004,000 in bonds at face value to finance construction of a warehouse. A $1.04 million contract is signed for construction of the warehouse. The commitment is required if allowed. A $149,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a). Equipment for the fire department is received with...
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.) a. The government sells $1,048,000 in bonds at face value to finance construction of a warehouse. b. A $1.09 million contract is signed for construction of the warehouse. The commitment is...
for the first and second part to this question to record fund
financial statements and government wide ,
we use these accounts for journal entries
allowance for uncollectible current taxes
bonds payable
cash
deferred revenues
encumbrances
encumbrances-equipment
encumbrences- warehouse
encumbrences outstanding
expenditure control- machinery and equip
fund balance - reserved for encumbrances
grant recievable
inventory supplies
machinery and equip
other financing sources- bond proceeds
other financing sources - transfers in
other financing uses - transfers out
revenues- property taxes
taxes...
Please note I have the answer. I am interested in knowing why this problem or at least the question (c) is treated as an intra-activity transfer? Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. a. The government sells $900,000 in bonds at face value to finance construction of a warehouse. b. A $1.1 million contract is signed for construction of the warehouse. The commitment is...
A local government has the following transactions during the current fiscal period. Prepare journal entries without dollar amounts, first for fund financial statements and then for government-wide financial statements. a. The budget for the police department, ambulance service, and other ongoing activities is passed. Funding is from property taxes, transfers, and bond proceeds. All monetary outflows will be for expenses and fixed assets. A deficit is projected. b. A bond is issued at face value to fund the construction of...
Prepare journal entries for the City of Pudding's governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements. A new truck for the sanitation department was ordered at a cost of $113,000. The city print shop did $3,600 worth of work for the school system (but has not yet been paid). An $10 million bond was issued to build a new road. Cash of $193,000 is transferred from the general fund to...
Prepare journal entries for the City of Pudding's governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements. a. A new truck for the sanitation department was ordered at a cost of $105,250. b. The city print shop did $1,800 worth of work for the school system (but has not yet been paid). c. An $15 million bond was issued to build a new road. d. Cash of $179,000 is transferred from...