Prepare journal entries for the purchase of a grader for $375,000: Purchased from the General Operating Fund.
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Question:
Prepare journal entries for the purchase of a grader for $375,000:
- Purchased from the General Operating Fund.
- Purchased from the Equipment Reserve
- Paid by the General Operating Cash Account but funded by the General Reserve Fund.
- Use the account codes below which have been pre-selected from the Chart of Accounts in the Appendices (you’re welcome!).
- Remember to identify the fund in use (ie Capital Fund, General Operating, Reserve Fund, etc.) and include posting descriptions.
TIP 1: Capital expenditures made through the General or Utility Fund are coded to Transfer (or contribution) to Capital.
TIP 2: Purchases made from the General Reserve Fund flows through the General Operating Fund.
Selected accounts for use: | |
General Operating Fund (GOF) | Equipment Reserve Fund |
102 Cash on Deposit | 301 Equip Reserve Bank |
221 Due from General Reserve | 390 Equip Reserve Fund |
940 Transfer from General Reserve | |
9320 Transfer to Capital | General Reserve Fund |
320 Due to General Operating Fund | |
General Capital Fund | 380 General Reserve Fund Balance |
441 Fixed Asset | |
592 Capital Surplus |
Posted Date: