Question

mislead users ay P4-4 (GL and SL Entrie lowing transactions and ex Ledger of a local gover getary or actual in nature. tead users Old gu n u unu vuugui comparison Statement? SL Entries) Prepare the journal entries (budgetary and actual) to record the fol- tions and events in the General Ledger. Revenues Ledger, and Expenditures local government General Fund. Identify whether the entry is for the General or for the subsidiary ledgers. Also, note whether the General Ledger entries are bud- Ledger of 1. The annual budget was adopted as follows: Estimated Revenues: $400.000 Property taxes.... 200.000 Sales taxes ....... 100.000 Charges for services. 50.000 Other...... $750,000 Appropriations: General administration... Police...... Fire ..... Other...... $ 80,000 310.000 320.000 30.000 $740.000 2. Property taxes of $408.000 were levied, of which $7.000 are expected to be uncollectible 3. Purchase orders and contracts were approved for goods and services expected to cost: $ 50,000 90.000 $140.000 Police... Fire ... cervices ordered were received.

Answer 1

P4-4 1 CR Particulars DR Estimated revenues $ 7,50,000.00 Appropriations Fund balance To record the estimated revenues and appropriations $ 7,40,000.00 $ 10,000.00 Revenue Ledger Particulars Property tax Sales taxes Charge of services Others Total DR Balance $ 4,00,000.00 $ 2,00,000.00 $ 1,00,000.00 $ 50,000.00 $ 7,50,000.00 Appropriaions ledger Particulars Administration Police Fire Other Total DR Balance $ 80,000.00 $ 3,10,000.00 $ 3,20,000.00 $ 30,000.00 $ 7,40,000.00 $ 4,08,000.00 2 Taxes receivable-current Allowance for uncollectible current taxes Revenues To record the property tax levy $ 7,000.00 $ 4,01,000.00 $ 1,40,000.00 3 Encumbrances Encumbrances outstanding To record the encumbrances $ 1,40,000.00 Expenditure ledger Particulars Police Fire Total DR Balance $ 50,000.00 $ 90,000.00 $ 1,40,000.00 P3-2 CR 1 Particulars DR Allowance for uncollectible- Current tax $ 50,00,000.00 Allowance for uncollectible- Delinquent $ 1,00,000.00 =50000000*2% Revenue $ 49,00,000.00 To record transfer of fund to establish internal service fund 2 Cash $ 43,00,000.00 Tax receivable- Delinquent $ 7,00,000.00 Tax receivable- Current $ 50,00,000.00 To record the collection of receivable, and classification of deliquent receivable Allowance for uncollectible-current tax $ 1,00,000.00 Allowance for uncollectible- delinquent To record reclassification of uncollectible accounts $ 1,00,000.00 3 Cash $ 5,40,000.00 Tax receivable- delinquent To record the collection of deliquent receivable $ 5,40,000.00 $ 35,20,000.00 =3500000+200000-180000 4 Expenditure Cash Accrued payroll To record payroll expenditure $ 35,00,000.00 $ 20,000.00 $ 8,00,000.00 5 Advance to enterprise fund Cash To record the advance to enterprise fund $ 8,00,000.00 $ 3,98,000.00 6 Expenditure Voucher payable To record the purchase of material $ 3,98,000.00 7 Expenditure $ 40,000.00 Voucher payable To record the purchase of maintenance equipment $ 40,000.00