Question

The following transactions take place.
1. Bond proceeds of $1,000,000 were received to be used in constructing a firehouse. An equal amount is contributed from general revenues.
2. $800,000 of serial bonds matured. Interest of $120,000 was paid on these and other serial bonds outstanding.
3. $8,000 was received as insurance proceeds from the accidental destruction of a four-year old police car costing $24,000.
4. $120,000 in expendable funds was transferred from the City Parks Endowment Fund to the City Parks Special Revenue Fund.
5. Equipment purchased from general revenues at a cost of $200,000 was sold for $40,000.
6. The City Water Company (an enterprise fund) issued a bill for $800 for water provided to the street department's street cleaner.
7. The City Water Company transferred $400,000 in excess funds to the General Fund.
8. A central motor pool was established by a contribution of $120,000 from the General Fund, a long-term loan of $80,000 from the City Parks Special Revenue Fund, and general obligation bond issue proceeds of $200,000.
9. The Motor Pool Fund billed the General Fund $10,000 and the City Parks Fund $4,000 for the use of motor vehicles.
10. Special Assessment Bonds in the amount of $400,000 were retired. The city has indicated a willingness to guarantee the payment of principal even though it was not obligated to do so.
11. Customers' deposits of $8,000 for water meters were received by the City Water Company during the year. The monies are to be held in trust until the customers request that their services be disconnected and the final bills are collected.
12. It is determined that the Service Fund will require an annual contribution of $60,000 and earnings of $6,000 in the current year to accumulate the amounts necessary to retire general obligation term bonds.

Required:
Prepare entries in general journal form to record these transactions in the proper fund(s).
Designate the fund in which each entry is recorded.



$1.99
Sales0
Views30
Comments0
  • CreatedMarch 16, 2015
  • Files Included
Post your question
5000