Prepare journal entries to record the following transactions and events applicable to the calendar year 2013 operations
Question:
Prepare journal entries to record the following transactions and events applicable to the calendar year 2013 operations of Lily City:
1. The approved budget for the year follows:
Estimated Revenues
Property tax revenues....... $ 600,000
Licenses and fees .......30,000
Appropriations
Public safety salaries....... $ 550,000
Public safety, other expenditures.. 90,000
2. Property taxes of $ 600,000 were levied, and bills totaling that amount were mailed at the beginning of the year. During the year, $ 590,000 of property taxes were collected. Licenses and fees collected amounted to $ 28,000.
3. Salaries paid during the year amounted to $ 580,000; police officers earned an additional $ 12,000 during December that will be paid in January.
4. Purchase orders for supplies were placed in the amount of $ 60,000. The entire amount ordered was received during the year, together with invoices totaling $ 56,000. The invoices were approved for payment.
Step by Step Answer:
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton