Pueblo City engaged in the following transactions during the current month. Prepare journal entries to record these events. Some transactions may require more than one set of journal entries. Pueblo City has a general fund, special revenue fund, debt service fund, a capital projects fund, an enterprise fund, an internal service fund, and a custodial fund. Prepare the appropriate journal entries. Make sure that you indicate the fund where the entities are to be made. All the funds may not be used in this problem. Assume that revenues, expenditures, or other financing sources and uses for governmental funds are unassigned unless the following information indicates otherwise. Revenues, expenditure, and other financing sources and uses are either unassigned, assigned, committed, restricted or nonspendable. Please indicate which category is applicable for revenues, expenditures, or other financing sources and uses in the problem. Assume for nongovernmental funds that revenues, expenses, or capital contributions are unrestricted unless the following information indicates otherwise. Revenues, expenses, or capital contributions are either restricted or unrestricted. Please indicate which category is applicable for revenues, expenses, or capital contributions.

a. The city issued $3,000,000 in long-term general obligation debt. The funds must be used to construct a new administration building. General obligation debt is backed by the taxing power of the government.

b. The city begins construction on the new administration building. The city pays the contractor $200,000 using the funds from part a.

c. The city receives property taxes of $300,000.

d. The city paid salaries of $130,000 for its employees.

e. The city sold the old police cars that it purchased four years ago for $30,000. The original cost of the vehicles was $200,000. The funds can be used for any purpose.

f. The city council voted to transfer $25,000 of unassigned funds from the general fund to its debt service fund. $20,000 was for repayment of principal on its debt and $5,000 was for repayment of interest.

g. The city received $100,000 from a pass-through grant. The city has neither administrative involvement nor financial involvement with this grant. The money is to be transferred to local school districts in the future.

h. The city’s police department paid $20,000 to the city’s information systems department forinstalling the police department’s computers. The city’s information systems department sets charges to cover its costs and repay any debt that it has outstanding.

Answer rating: 100% (QA)

a General Fund Dr 3000000 Longterm General Obligation Debt Cr ... View the full answer