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 required if allowed. |
c. | A $148,000 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 $12,310. When it was ordered, an anticipated cost of $12,000 had been recorded. |
e. | Supplies to be used in the schools are bought for $3,000 cash. The consumption method is used. |
f. |
A state grant of $94,000 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 $706,000, although officials anticipate that 3% will never be collected. There is an enforceable legal claim for this money and the government can use it immediately. |
FUND FINANCIAL STATEMENTS |
GOVERNMENT-WIDE FINANCIAL STATEMENTS |
Journal Entries | ||||||
Fund-based | Government-wide | |||||
Account Title | Debit | Credit | Account Title | Debit | Credit | |
a.The government sells $1,048,000 in bonds at face value to finance construction of a warehouse. | ||||||
Capital projects Fund | Governmental activities | |||||
Cash | 1048000 | Cash | 1048000 | |||
Other Financing Sources-Bond proceeds | 1048000 | Bonds Payable | 1048000 | |||
b.A $1.09 million contract is signed for construction of the warehouse. The commitment is required if allowed. | ||||||
General Fund | ||||||
Encumbrances | 1090000 | No Journal entry required | ||||
Fund Balance Reserved for Encumbrances | 1090000 | |||||
c.A $148,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a). | ||||||
General Fund | ||||||
Other Financing Uses-Transfers Out | 148000 | No Journal entry required | ||||
Cash | 148000 | |||||
Debt Service Fund | ||||||
Cash | 148000 | |||||
Other Financing Sources-Transfers In | 148000 | |||||
d.Equipment for the fire department is received with a cost of $12,310. When it was ordered, an anticipated cost of $12,000 had been recorded. | ||||||
General Fund | ||||||
Fund Balance-Reserved for Encumbrances | 12000 | Machinery and Equipment | 12310 | |||
Encumbrances | 12000 | Vouchers/Accounts Payable | 12310 | |||
Expenditures Control-Machinery and Equipment | 12310 | |||||
Vouchers Payable | 12310 | |||||
e.Supplies to be used in the schools are bought for $3,000 cash. The consumption method is used. | ||||||
General fund | ||||||
Inventory of Supplies | 3000 | Inventory of Supplies | 3000 | |||
Cash | 3000 | Cash | 3000 | |||
f.A state grant of $94,000 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. | ||||||
Special Revenue Fund | ||||||
Cash | 94000 | Cash | 94000 | |||
Deferred Revenues | 94000 | Deferred Revenues | 94000 | |||
g.Property tax assessments are mailed to citizens of the government. The total assessment is $706,000, although officials anticipate that 3% will never be collected. There is an enforceable legal claim for this money and the government can use it immediately. | ||||||
General Fund | ||||||
Property Taxes Receivable | 706000 | Property Taxes Receivable | 706000 | |||
Revenues Control | 684820 | Revenues | 684820 | |||
Allowance for Uncollectible Taxes(706000*3%) | 21180 | Allowance for Uncollectible Taxes(706000*3%) | 21180 |
Prepare journal entries for a local government to record the following transactions, first for fund financial...
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