Prepare journal entries for each of the following transactions. In addition, identify the fund in which each entry would be recorded.
1. The General Fund made its annual contribution of $ 1,500,000 to the fund that will pay $ 1,000,000 principal and $ 500,000 interest on outstanding general obligation debt.
2. The city paid $ 1,000,000 of principal and $ 500,000 of interest on outstanding general obligation bonds from resources previously accumulated.
3. A Debt Service Fund previously retired the total principal and the interest in full on an out-standing bond issue. Currently the fund carries a balance of $ 300,000. These resources can be spent by the General Fund in any way the city manager considers appropriate.
4. The Police Department paid $ 300,000 for equipment. This equipment was ordered 3 months prior to delivery at an estimated cost of $ 295,000 (assume a voucher system is used and the excess expenditure is approved and paid).
5. The fiscal agent for the city was paid its annual $ 10,000 fee from resources accumulated in the only Debt Service Fund used by the city.

  • CreatedDecember 30, 2014
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