During 2017, the City of Party Beach participated in the following transactions: The city council approved a
Question:
During 2017, the City of Party Beach participated in the following transactions:
The city council approved a budget consisting of estimated revenues of $1,500,000 and expenditure appropriations of $1,550,000.
Property tax assessment statements totaling $1,100,000 were mailed to owners. Experience indicates that 2% of taxes levied will be uncollectible.
Equipment was purchased for $85,000 and old equipment was sold for $15,000 at the end of its estimated useful life.
The city manager signed a contract to buy a machine that cost $25,000.
The city received a statement from the state indicating that the city's portion of the state sales tax is $50,000.
The machine requested in (4) above is delivered and accepted. Payment of the invoice in the amount of $26,000 was approved.
Required :
Prepare the necessary journal entries to account for the above transactions.
Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078025822
17th edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson