A local government has the following transactions during the
current fiscal period. Prepare journal
entries without dollar amounts, first for fund financial statements
and then for government-wide
financial statements.
a. The budget for the police department, ambulance service, and
other ongoing activities is passed.
Funding is from property taxes, transfers, and bond proceeds. All
monetary outflows will be for
expenses and fixed assets. A deficit is projected.
b. A bond is issued at face value to fund the construction of a new
municipal building
c. A computer is ordered for the tax department.
d. The computer is received.
e. The invoice for the computer is paid.
f. The city council agrees to transfer money from the general fund
as partial payment for a special
assessments project but has not yet done so. The city will be
secondarily liable for any money
borrowed for this work.
g. The city council creates a motor pool to service all government
vehicles. Money is transferred
from the general fund to permanently finance this facility.
h. Property taxes are levied. Although officials believe that most
of these taxes should be collected
during the current period, a small percentage is estimated to be
uncollectible.
i. The city collects grant money from the state that must be spent
as a supplement to the salaries of
the police force. No entry has been recorded. Appropriate payment
of the supplement is viewed
as an eligibility requirement.
j. A portion of the grant money in (i) is properly spent.
Preparation of journal
entries without dollar amounts, first for fund financial statements
and then for government-wide.
Refer the below images for more detailed solution.
A local government has the following transactions during the current fiscal period. Prepare journal entries without...
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