Question

Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. a. The government sells $992,000 in bonds at face value to finance construction of a warehouse. b. A $1.14 million contract is signed for construction of the warehouse. The commitment is required if allowed. C. A $164,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a). d. Equipment for the fire department is received with a cost of $15,240. When it was ordered, an anticipated cost of $14,600 had been recorded. e. Supplies to be used in the schools are bought for $4,200 cash. The consumption method is used. LA state grant of $109,250 is awarded to supplement police salaries. The money will be paid to reimburse the government after the supplement payments have been made to the police officers. g. Property tax assessments are mailed to citizens of the government. The total assessment is $648,000, although officials anticipate that 4 percent will never be collected. There is an enforceable legal claim for this money and the government can use it immediately. Complete this question by entering your answers in the tabs below.

Answer 1

Debit credit credit 9992,040 Debit Record sale of bonds Capital projects fund 9992000 Capital projects fond Cash 999900 other financing sources -Bonds proceeds [Being Amount received on Sale of Bonds for Sinancing Warehouse 1 Record Contract for Construction of service Capital projects hund Capital project fund Encumbrancesa outstanding Encumbrances- warehouse $ 2,140,000 Expenditures - 140,000 $ 1,149,00 $ Contract payable (Being amount payable is recognised) Record transfer of un-restricted fonts General fund other financing uses $1,64,000 Cash $ 164,000 Debt Service fund $164,000 other financing sources $164000 $14,600 Record encombrance out. General fund Encumbrances outstanding - $14,600 Encombrances - Equipment Record Receipt & Equipment a Expenditures Control - Machinery and site Equipment cs Scanned with CamScanner vouchers or Accounts payable 15, 240

Debit credit Record General fund supplies bought for cash Inventory of supplies $4,200 Cash $4,200 Record the grant revenue had. Special Revenue Fund $ 109250 - Grant Receivable Unavailable Grank Revenue $109,250 Record property tax a sessments General Fund Tanes Receivable. $648,000 Revenues - Property Tanes - Allowance for un-collectable Current Tanes $622080 $ 25,920 Scanned with CamScanner
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