Question: Prepare journal entries to record the following transactions and identify

Prepare journal entries to record the following transactions, and identify all the affected funds. Many transactions require more than one journal entry.
1. The General Fund operating budget was approved as follows:
Appropriations........... $ 5,200,000
Estimated revenues ........ 5,000,000
Estimated other financing sources... 300,000
2. Plans for a new criminal courts building were approved. General obligation bonds with a face value of $ 7,000,000 were issued for $ 7,200,000. Local laws stipulate that any premium must be transferred to the appropriate Debt Service Fund. In addition, a federal grant of $ 8,000,000 was received.
3. The city was notified by the state that the state had approved a grant of $ 200,000 for training civil defense personnel. The notification letter stated that the city would be reimbursed quarterly for 50 percent of all allowable costs incurred by the city. During the first quarter of the year, the city incurred total costs of $ 90,000 on the training program. It then billed the state for the state’s share of the costs.
4. The city received $ 400,000 from the state. This amount was the city’s share of the state gasoline tax. This money can be spent only to repair streets, and a separate accounting is required by the state.
5. $ 200,000 installment of general obligation bonds matured. The city paid the installment together with $ 120,000 of interest.
6. The city needed $ 3,200,000 to balance the budget. To provide that amount and an allowance for uncollectible taxes, the city levied property taxes in the amount of $ 3,230,000.
7. Salaries of governmental employees were paid, totaling $ 800,000. Of this amount, $ 65,000 was withheld and included in an account called Due to federal government as income tax payments. In addition, the city made a contribution of $ 100,000 to the city- operated pension sys-tem. Assume that all employees were paid through the General Fund.
8. The Central Supplies Fund, an Internal Service Fund, billed the General Fund $ 15,000 and the Gas Service Fund (an Enterprise Fund) $ 8,000 for supplies.
9. The Gas Service Fund billed the General Fund $ 2,500, the Central Supplies Fund for $ 1,000, and the remainder of its customers $ 2,500,000.
10. The city sent violation notices to restaurant owners for repeated failure to comply with local sanitary codes, along with notices of fines totaling $ 25,000. The city anticipates collecting the entire amount of the fines.
11. The city allows its employees to accumulate up to 30 days of annual leave and to receive pay for unused leave on termination or retirement. When it closed its General Fund books at year- end, the city owed two retired employees a total of $ 15,000 for unused leave, to be paid during the following month. The city also estimated that the year- to- year increase in the year- end annual leave liability for all working employees was $ 250,000.
12. Equity securities, carried in the city’s pension fund at $ 3,200,000, had a fair value of $ 3,050,000 at year- end.

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  • CreatedDecember 30, 2014
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