Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Elmwood City incurred the following transactions during the year. Use the lines provided below and on the following pages to prepare journal entries to record

Elmwood City incurred the following transactions during the year. Use the lines provided below and on the following pages to prepare journal entries to record each transaction and identify the fund in which each entry is recorded. No explanations are required. Be sure to place the corresponding number and fund type for each transaction beside each entry. Skip one line between each entry.
1. The Elmwood City Council passed a resolution approving a general operating budget of $6,800,000 for the fiscal year. Total revenues are estimated at $7,800,000.
2. The Elmwood City Council passed an ordinance providing a property tax levy to all residents of $3,360,000. Property tax bills are mailed to property owners. An estimated 5% will be uncollectible.
3. Elmwood City issued $1,000,000 bonds at 104% to a major brokerage firm. The stated interest rate is 10% and proceeds collected were $1,040,000. Construction of a new Municipal Courts Building will be financed by the proceeds of this bond issue.
4. The $40,000 premium on bond sale in (3) above is transferred to the Debt Service Fund.
5. Elmwoods lottery earned $2,000,000 for the year. All lottery proceeds must be used to support the citys education.
6. Funds of $2,000,000 were transferred out of the lottery fund (see item 5 above) and into Elmwood Citys primary bank account (general fund). The funds were then disbursed for education.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Here are the journal entries for each transaction along with the corresponding fund types 1 General ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions

Question

4. Greet students at the door to the class every day.

Answered: 1 week ago