Question

Prepare journal entries for the City of Pudding's governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements.

1. A new truck for the sanitation department was ordered at a cost of $113,000.
2. The city print shop did $3,600 worth of work for the school system (but has not yet been paid).
3. An $10 million bond was issued to build a new road.
4. Cash of $193,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.
5. The truck ordered in (a) is received at an actual cost of $115,400. Payment is not made at this time.
6. Cash of $34,400 is transferred from the general fund to the capital projects fund.
7. A state grant of $40,000 is received that must be spent to promote recycling.
8. The first $6,000 of the state grant received in (g) is appropriately expended.

a. Prepare journal entries for the City of Pudding's governmental funds to record the fund financial statements

b.Prepare journal entries for the City of Pudding's governmental funds to record the government-wide financial statements.

Answer 1

Answer:

Journal Entries

City of Pudding's
For Fund Financial Statements
S.No	Particulars	Debit ($)	Credit ($)
a	General fund
	Encumbrance Control	$113,000
	To fund balance-Reserved for Encumbrances		$113,000
b	General Fund
	Expenditures	$3,600
	To due to internal Service fund		$3,600
c	Capital Projects Fund
	Cash	$10,000,000
	To other financing sources-Bonds proceeds		$10,000,000
d	General Fund
	Other financing uses-Transfer out	$193,000
	To cash		$193,000
e	General Fund
	Fund Balance-Reserved for Encumbrances	$113,000
	To Encumbrance Control		$113,000
	Expenditures	$115,400
	To Vouchers Payable		$115,400
f	General Fund
	Other Financial Uses-Transfer Out	$34,400
	To Cash		$34,400
	Capital Projects Fund
	Cash	$34,400
	To Other Financing Sources-Transfers In		$34,400
g	Special Revenue Fund
	Cash	$40,000
	To Deferred Revenues		$40,000
h	Special Revenue Fund
	Deferred Revenues	$6,000
	To Revenues		$6,000
	Expenditures	$6,000
	To Cash		$6,000

City of Pudding's
For Wide Financial Statements
S.No	Particulars	Debit ($)	Credit ($)
a	No Entry
b	No Entry
c	Government Activities
	Cash	$10,000,000
	To Bonds Payable		$10,000,000
d	Government Activities
	Transfers Out-Swimming Pool	$193,000
	To Cash		$193,000
	Business Type Activities
	Cash	$193,000
	To Transfers In-General Fund		$193,000
e	Governmental Activities
	Equipment-Trucks	$115,400
	To Vouchers or Accounts Payable		$115,400
f	No Entry
g	Governmental Activities
	Cash	$40,000
	To Deferred Revenues		$40,000
h	Governmental Activities
	Expense-Public Service	$6,000
	To Cash		$6,000
	Deferred Revenues	$6,000
	To Revenues		$6,000