Problem 16-17 (LO 4) Various funds and accounts groups. The Village of Fay was recently incorporated and began financial operations on July 1, 2018, the beginning got its fiscal year.

The following transactions occurred during this first fiscal year from July 1, 2018, to June 30, 2019:

1. 1.ThevillagecounciladoptedabudgetforgeneraloperationsduringthefiscalyearendingJune30,2019.Revenueswereestimatedat$400,000.Legalauthorizationsforexpenditureswere$394,000.
3. 2.Propertytaxeswereleviedfor$390,000.Itwasestimatedthat2%ofthisamountwouldprovetobeuncollectible.Thesetaxeswereavailableonthedateofthelevytofinancecurrentexpenditures.
5. 3.Duringtheyear,aresidentofthevillagedonatedmarketablesecurities,valuedat$50,000,tothevillageunderthetermsofatrustagreement.Theagreementstipulatedthattheprincipalistobekeptintact.Theuseofrevenuegeneratedbythesecuritiesistoberestrictedtofinancingcollegescholarshipsforneedystudents.Revenueearnedandreceivedonthesemarketablesecuritiesamountedto$5,500throughJune30,2019.
7. 4.Ageneralfundtransferof$5,000wasmadetoestablishanIntergovernmentalServiceFundtoprovideforapermanentinvestmentininventory.
9. 5.Thevillagedecidedtoinstalllightinginthevillagepark.Aspecialassessmentprojectwasauthorizedtoinstallthelightingatacostof$75,000.Theappropriationswasformallyrecorded.Tofinancetheproject,$3,000istobetransferredfromthegeneralfund,andthebalanceisformspecialassessments.
11. 6.Assessmentswereleviedfor$72,000,withthevillagecontributing$3,000fromthegeneralfund.Allassessmentsandthevillagecontributionswerecollectedduringtheyear.
13. 7.Acontractfor$75,000wassignedandapprovedbyavillageofficialfortheinstallationoflighting.AtJune30,2019,thecontractwascompletedfor$75,000.Thecontractorwaspaidallbut5%,whichwasretainedtoensurecompliancewiththetermsofthecontract.Encumbrancesandotherbudgetaryaccountsaremaintained.
15. 8.Duringtheyear,theinternalservicefundpurchasedvarioussuppliesatacostof$1,900.
17. 9. Cash collections recorded by the general fund during the year were as follows:

Property taxes$386,000

Licenses and permits 7,000

1. 10.Thevillagecouncildecidedtobuildavillagehall,atanestimatedcostof$500,000,toreplacespaceoccupiedinrentedfacilities.Thevillagedoesnotrecordprojectauthorizations.Itwasdecidedthatgeneralobligationbondsbearing6%wouldbeissued.OnJune30,2019,thebondswereissuedattheirfacevalueof$500,000,payablein20years.Nocontractshavebeensignedforthisproject,andnoexpenditureshavebeenmade.
3. 11.Afiretruck,originallyapprovedforpurchasebythehighestlegislativebodyinthevillage,waspurchasedfor$150,000,andthevoucherwasapproved.Paymentwasmadethroughthegeneralfund.Thisexpenditurewaspreviouslyencumberedfor$145,000.

Prepare journal entries to properly record each of the proceedings transactions in the appropriate funds(s) or group of accounts of Fay for the fiscal year ended June 30, 2019. Use the following funds and groups of accounts:

1. a. General fund
2. b. Capital projects fund
3. c. Internal service fund
4. d. Private-purpose principal fund
5. e. Private-purpose earnings funds
6. f. General long-term debt account group
7. g. General fixed assets account group

Journal entries should be numbered to correspond with the appropriate transactions. Do not prepare closing entries for any fund.

Your answer sheet should be organized as follows:

Transaction No. Fund or Account Group. Account Tile and Explanation. Amount

Debit Credit