Question

Q3. The following are the events and transactions related with a township for the year 2015. You are required to prepare necessary entries for Township for the year 2015.                     

                                                                                                                                                  a.   The Township adopted a budget calling for appropriations of $500,000. The estimated revenues (all property taxes) were $450,000.

                  b.   The Township sent property tax bills amounting to $450,000 to property owners.

                  c.   Property owners paid $420,000 of property taxes to the Township.

                  d. A purchase order of $65,500 was sent to a vendor of supplies.

                  e.   The supplies ordered in transaction d. were received in good order and the accompanying invoice of $55,000 was approved.

Answer 1

a.) No financial effect therefore no journal entry

b.) Accrued Property Tax bills - $450,000

To Property owners- $450,000

c.) Property owners $420,000

To Bank/Cash $420,000

d.) No financial effect therefore no journal entry

e.) Goods received $55000

To Invoice $55000

Invoice $55000

To Vendor Account $55000