Question

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.

1. A new truck for the sanitation department was ordered at a cost of $113,000.
2. The city print shop did $3,600 worth of work for the school system (but has not yet been paid).
3. An $10 million bond was issued to build a new road.
4. Cash of $193,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.
5. The truck ordered in (a) is received at an actual cost of $115,400. Payment is not made at this time.
6. Cash of $34,400 is transferred from the general fund to the capital projects fund.
7. A state grant of $40,000 is received that must be spent to promote recycling.
8. The first $6,000 of the state grant received in (g) is appropriately expended.

Answer 1

City of Puddings
For fund financial statements
Trans.	particulars	Debit ($)	Credit ($)
a.	General fund encymbrances	113000
	A new truck ordered for the saritation department		113000
b.	General fund expenditure	3600
	Supplies		3600
	due to internal service fund
c.	Capital projects fund cash	10000000
	10 million bord was issed to build a new road		10000000
d.	General fund other financing uses fore swimming pool	193000
	Cash is transferred		193000
	form the general fund to provide perment financial for a municipal swimming pool)
e.	General fund	115400
	Encumbrances outstanding		115400
f.	Genral fund other financing uses.	34400
	Cash is transferred to the capital project fund		34400
g.	Special revenue fund cash	40000
	Un-earned grant revenue		40000
h.	The first of the state grant received is appropriate expended	6000
		6000
Government-wide financial statement;
	Particulars	Debit ($)	Credit ($)
a.	General fund no entry
b	General fund no entry
c.	Gov. activities cash	10000000
	Bonds payables		10000000
d.	Gov. activities-swimming pool	193000
	Cash		193000
e.	Gov. activity-equipment	115400
	Truck		115400
f.	No entry required
g.	Gov. activities-cash	40000
	Deferred revenue		40000
h.	Gov-activities expense	6000
	Cash		6000