Question

Prepare the journal entries (budgetary and actual) to record the following transactions and events in the General Ledger, Revenues Ledger, and Expenditures Ledger of a local government General Fund. Identify whether the entry is for the General Ledger or for the subsidiary ledgers. Also, note whether the General Ledger entries are budgetary or actual in nature.
1. The annual budget was adopted, using the modified accrual basis of accounting, as follows:
Estimated Revenues:  
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000
Sales taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Charges for services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
$750,000
Appropriations:  
General administration $ 80,000
Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,000
Fire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
  $740,000
2. Property taxes of $408,000 were levied, of which $7,000 are expected to be uncollectible.
3. Purchase orders and contracts were approved for goods and services expected to cost:
Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000
Fire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
  $140,000
4. Most of the goods and services ordered were received.


5. The budget was revised during the year to decrease the sales tax revenue estimate by $5,000 and increase the police appropriation by $7,000.
6. Interfund transfers were ordered as follows:
From the General Fund
To provide for principal and interest payments on GLTL . . . . . . . . . . $30,000
To establish a new data processing Internal Service Fund . . . . . . . . . 50,000
  $80,000
To the General Fund  
Balance of Capital Projects Fund terminated upon project
completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000
Routine annual transfer from a Special Revenue Fund . . . . . . . . . . . . 25,000
  $85,000
All of the transfers were paid or received except that from the Special Revenue Fund, which will be paid soon.
7. It was discovered that $2,000 of supplies charged to Police in transaction 4 should be charged to Parks, which is financed through a Special RevenueFund.


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  • CreatedOctober 25, 2014
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