Wages and related benefits of employees for the last pay period in December 20X1 were $40 million. Employees are to be paid on January 6, 20X2. The fiscal year ends December 31.

Fund

Government-wide

In 20X1 the City ordered supplies that cost $4 million, received supplies that cost $3.5 million, paid for supplies that cost $3 million and used supplies that cost $3.3 million. (Include encumbrance entries, Purchase Method entries and Consumption method entries.)

Fund

Government-wide

On June 15, 20X1 the City acquired and paid for an insurance policy that cost $300,000. The policy covers the one-year period beginning July 1. Include both purchase and consumption method entries.

Fund

Government-wide

The City acquired a computer at a cost of $3 million, paid in cash. It has a useful life of three years.

Fund

Government-wide

It acquired the same computer, issuing a three-year, 6 percent, installment note for the purchase price. During the year it paid the first installment of $1,122,330 (interest of $180,000 and principal of $942,330).

Fund

Government-wide

The City leased a computer, which has a fair market value of $3 million and an estimated useful life of three years. The lease cannot be canceled. The lease payment for 20X1 was $1,122,330 (interest of $180,000 and principal of $942,330).

Fund

Government-wide

In July, the City issued $100 million in 8 percent general obligation debt to finance capital improvements. The first interest payment of $4 million is due in early January 20X2.

Fund

Government-wide

In December the City transferred $2 million to the debt service fund for repayment of principal on serial bonds issued several years earlier. The payment is due in January.

Fund

Government-wide

Consistent with its budget, the City transferred $6 million to a debt service fund to accumulated resources for the eventual payment of debt.

Fund

Government-wide

Answer rating: 100% (QA)

1 Wages and related benefits of employees for the last pay period in December 20X1 Fund Governmentwide Entry Debit Wages and Benefits Expense 40 milli... View the full answer