Question

U uy grants and borrowings. M T C walance of the cost will be 9. The county borrowed $100.000 for General Fund purposes on a 6-month. 6% note. The note was issued 2 months before year-end. Prepare any required year-end adjustments as . well as recording the original transaction. P3.3 (Various General Fund Transactions) Prepare the general journal entries required for the following transactions of the Farmer County General Fund during 20X6. Also, use transaction analysis to show any effects on the GCA-GLTL accounts. 1. Levied property taxes. $9.000.000 (with uncollectible taxes estimated at 550.000). 2. Taxes collected before the due date totaled $7.500.000 of current taxes and $320.000 of 20X5 and other prior year taxes. 3. Purchased supplies on account for $110.000 4. Purchased equipment costing $198.659. which was vouchered. 5. Issued a 9-month. 10%. note to Jones National Bank on September 30, 20X6. to raise $300,000 to provide for a temporary cash shortfall in the General Fund. 6. Loaned $90,000 to the Self-Insurance Internal Service Fund. Repayment is required in 4 years. 7. Paid salaries of $5.800.000 during 20X6. Accrued salaries at the end of the year totaled $100,000, while at the beginning of the year they were $75.000. 8. Contributed $82.000 of General Fund resources to help cover the cost of the new water distribution lines installed by the county's Water Department, which provides services for a fee that is intended to recover the costs of providing the services. 9. Received $5.000 from the Economic Development Special Revenue Fund because General Fund resources had been used to pay a bill of the Economic Development Fund earlier in the year. General Fund expenditures were recorded when the bill was paid. 10. Paid $1.750 to the Central Printing Internal Service Fund for printing services used by the general administration of the county. 11. Record any necessary accruals at December 31. 20X6. P3-4 (Debt-Related Transactions) Prepare the general journal entries (budgetary and actual) to record the following transactions of the Ouinones County General Fund: 1 Quinones County borrowed $1.000.000 by issuing 6-month tax anticipation notes bearing

Answer 1

1
Property tax receivable account	DR	8950000
Uncollectible tax account	DR	50000
Property tax account	CR	900000
(Property tax levied and uncollectible recorded)
2
Bank account a/c		7820000
Property tax receivable account		7500000
Property tax receivable		320000
(Receipt of Tax)
3
Purchase account	DR	110000
Accounts payable account	CR	110000
(Being credit purchases made)
4
Equipment account	DR	198659
Accounts payable account	CR	198659
(Purchase of Equipment)
5
Bank account	DR	300000
9% notes account	CR	300000
(9month 10 % notes issue)
6
Bank account	DR	90000
Long term borrowings account	CR	90000
(Loan raised)
7
Accrued salary account(previous year)	DR	75000
Salary account(Current year)	DR	5725000
Bank account	CR	5800000
(salary paid for previous year and current year salary paid)
8
Salary account	DR	100000
Salary payable account (CY)	CR	100000
(current year salary payable recorded in books)
Accrual entry
9
Water distribution line fee account	DR	82000
Bank account	CR	82000
(fee paid for new water distribution lines)
10
Bank account	DR	50000
Economic development special revenue fund	CR	50000
(amount received from EDSRF)
11
Printing services account	DR	1750
Bank Account	CR	1750
(Printing service charges paid)
12
Interest on 9% notes a/c	DR	7500
	CR
Interest payable on notes		7500
(Interest accrued for 3 months - (300000*10%)*3/12)-Accrual entry