Record the appropriate journal entries for Sturgis City for the following transactions. The city uses encumbrance accounting
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Question:
Record the appropriate journal entries for Sturgis City for the following transactions. The city uses encumbrance accounting and maintains a provision for uncollectible accounts.
Note: Each transaction may involve more than one fund. The appropriate fund must be identified to receive credit.
- The central motor pool billed the General Fund for $33,000 in services. The General Fund previously recorded an encumbrance for the same amount.
- The city-owned landfill purchased two tractors for a total of $40,000. The related invoice was paid.
- The City entered into a contract with Maker’s Construction to build a civic center for $3 million.
- The General Fund paid the central motor pool invoice (item 1).
- The landfill issued $4 million in revenue bonds for renovations.
- The landfill recorded daily fee receipts of $14,000.
- Maker’s Construction issued a progress billing for $350,000. The contract provides for a 10% retained percentage.
- The landfill sold an old tractor for $5,000 cash. It originally cost $15,000. The Links previously recorded $13,000 in depreciation.
- The Maker’s Construction progress billing (item 7) was paid.
- The central motor pool paid employee salaries of $87,000.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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