Prepare the General Fund general journal entries required to record the following transactions. Include entries for any adjusting entries that would be appropriate by the end of the year in which the transaction occurred.

1. The government adopted its General Fund budget. Budgeted revenues were $6,500,000 and budgeted expenditures were $6,400,000.

2. Property taxes of $4,000,000 were levied; 1% of the taxes are expected to be uncollectible. $3,000,000 is expected to be collected from taxpayers by the end of the fiscal year. Another $500,000 is expected to be collected during the first two months of the next fiscal year.

3. Three million two hundred thousand dollars of taxes receivable were collected before the due date. The remaining taxes are past due. (The government has not changed its estimate of the total taxes to be collected this year and the first 2 months of the next year

4. License and permit revenues collected in cash totaled $300,000.

5. The government ordered vehicles for general government departments with an estimated cost of $700,000.

6. The government paid salaries, $3,600,000. Additional salaries were earned by employees but not paid by year end—$300,000.

7. The vehicles ordered in 5 were received. The actual cost was $690,000.

8. The government paid $500,000 of general revenues over to the fund through which its general government bonds are serviced to provide for future principal and interest payments.

9. The government borrowed $90,000 two months before year end on a 6%, 6-month note to provide additional cash for the General Fund. The note is a fund liability.

10. General Fund departments were billed $110,000 for water and sewer services provided by the government's own water and sewer department. One hundred thousand dollars was paid.

11. Three million dollars of General Fund cash was paid to the Airport Enterprise Fund. This loan is required to be repaid in 3 years.

12. Government computers were sold at auction for $13,000. The proceeds are unrestricted. The original cost of the computers, which were used by general government departments, was $80,000. They had been used two years longer than originally expected.

Answer rating: 100% (QA)

Date Particulars Debit Credit 1 Expenses 6400000 Gross Profit 100000 Revenue 6500000 To record the p... View the full answer