Question

Winter County enacted a law establishing a Highway Special Revenue Fund, effective January 1, 2020. The fund expenditures were to be financed by a special gasoline tax. Prepare journal entries to record the following transactions for the calendar year 2020. 1. Winter County adopted the following budget for the fund: Estimated revenues-gasoline taxes 855,000 Appropriations-maintenance salaries 745,000 90,000 Appropriations-maintenance supplies Budgeted increase in fund balance 20,000 2.The county collected gasoline taxes of $825.000. 3.The county paid maintenance salaries of $730,000.

Answer 1

1. {NOTE = budgeted figures are only for control purposes , there is no journal entries will be made for budgeted figures.}

JOURNAL ENTRIES FOR - Collection of taxes and maintenance salary .

DATE	PARTICULARS	L/F	DEBIT $	CREDIT $
2.	Cash account Dr. To Revenue - gasoline taxes a/c ( being tax is collected )		8,25,000	8,25,000
3.	Maintenance salary payble  a/c Dr. To Cash account ( being salary paid )		7,30,000	7,30,000

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