Problem

Prepare the journal entries required to record the following transactions in the general f...

Prepare the journal entries required to record the following transactions in the general fund of Rochester Township.

1. Borrowed $75,000 by issuing six-month tax anticipation notes.


2. Ordered equipment with an estimated cost of $33,000.


3. Received the equipment along with an invoice for its actual cost, $33,250.


4. Transferred $200,000 of general fund resources to a debt service fund.


5. On January 1, the township levied property taxes of $1,000,000. The township expects to collect all except $100,000 by the end of the fiscal year or within not more than 60 days thereafter. Of the remaining $100,000, half is expected to prove uncollectible.


6. The township received a $100,000 restricted grant for certain library programs from another unit of government. The grant will be accounted for in the general fund.


7. The township incurred $75,000 of expenditures for the programs covered by the library grant.

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Solutions For Problems in Chapter 20