Question

Exercise 17-1

	Your answer is partially correct. Try again.

Several independent financial activities of a governmental unit are given below.

1.		Revenue from the sale of licenses and permits for the first two months totaled $18,000.
2.		Land that had been donated previously was sold for $100,000.
3.		An order was placed for the purchase of a new fire engine at a price of $142,000.
4.		Bonds with a face value of $473,000 were issued at par value to finance a new park.
5.		A $262,000 grant was received from the federal government to help improve the local schools.
6.		The new fire engine was received and accepted. The approved price, however, was $151,000 rather than $142,000.

Prepare the journal entries needed to account for each transaction in the General Fund. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.
6.
	(To record engine received)
	(To remove encumbrances)

I need help with the account name too. PLEASE HELP!!

Answer 1

Journal
No.	Account	Ref	Debit	Credit
1	Revenue from the sale of licenses and permits for the first two months totaled $18,000
	Cash		$18,000
	Revenue			$18,000
2	Land that had been donated previously was sold for $100,000.
	Cash		100000
	Revenue			100000
3	An order was placed for the purchase of a new fire engine at a price of $142,000.
	Encumbrances		142000
	Reserve for encumbrances			142000
4	Bonds with a face value of $473,000 were issued at par value to finance a new park.
	Cash		473000
	Bond issue proceeds			473000
5	A $262,000 grant was received from the federal government to help improve the local schools.
	Cash		262000
	Revenue			262000
6	The new fire engine was received and accepted. The approved price, however, was $151,000 rather than $142,000.
	Expenditures		151,000
	Vouchers Payable			151,000
	Reserve for encumbrances		142000
	Encumbrances			142000

Answer 2

Answer #1 is correct, except for instead of account "reserve for encumbrances" use account "fund balance- Assigned"