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For numbers 1 ? 15, journalize the transaction using the ?Review Journals? spreadsheet....




Question;For;numbers 1 ? 15, journalize the transaction using the ?Review Journals?;spreadsheet. On the same spreadsheet;tell if each transaction will affect any of the following statements: the;Statement of Net Assets, the Statement of Activities, the Fund Balance Sheet;Statement of Revenues, and Expenditures & Changes in Fund Balance.;1. Record the approved budget for the general fund for fiscal year 2011;(approved on February 28) using the following;Revenues ?;Taxes: (Only 95% of taxes is deemed collectible);Real Property $1,500,000;Sales $700,000;Interest and;Penalties on Taxes $6,000;Intergovernmental;Revenue $280,000;Charges for;Services $192,000;Total Estimated Revenues $2,678,000;Appropriations ?;General;Government $ 1,100,000;Public Safety;Police $550,000;Fire $550,000;Building Safety $175,000;Public Works $800,000;Health and;Welfare $650,000;Parks and;Recreation $500,000;Total Appropriations $3,225,000;Other Financial Uses ?;$50,000;2. 3/1/2011 - Enter into contract to purchase salt for snow clearance;for Public Works. Purchase order for;$800,000;3. 4/25/2011 - Purchase three police cars at $25,000 each;4. 5/16/2011 ? Received $550,000 of salt and invoice;5. 6/1/2011 ? Received approval for bond issuance of $2,500,000 to;purchase land and build a new playground.;General taxes will be used to retire the debt. Bonds will not be issued until September 1;(annual interest rate on bonds is 5%).;6. 6/30-2011 ? Paid for $550,000 for salt;7. 7/15/2011 ? Received remaining salt at $225,000;8. 7/30/200 ? Paid $225,000 for salt.;9. 8/1/2011 ? Received the following revenues;Real Property $650,000;Sales $80,000;Interest and;Penalties on Taxes $1,000;Intergovernmental;Revenue $120,000 (80,000 from federal;grant and 40,000 from state grant);Charges for;Services $80,000;10. 9/1/2011 ? Received $2,400,000 on bond issue with a face value of;$2,500,000. Principal payment of;$250,000 is due 9/1 annually and Interest payments are due semiannually on 9/1;and 3/1 of every year. The proceeds were;used to purchase land for $100,000 and enter into a construction contract for;2,000,000.;11. 10/5/2011 - $50,000 is moved from General fund to an internal;service fund.;12. 10/31/2011 - Purchased building safety materials and supplies for;$175,000. Assume invoice and payment;occurred on date of purchase.;13. 11/1/2011 ? Entered into lease to own agreement for equipment used;for Public Safety. The lease payments;are $5,000 annually for 10 years. The;first payment was due 11/1/2011. Assume;a 10% interest rate and the fair value amount of the property is 32,000.;14. 12/31/2011 ? Perform closing entries for the following only;Appropriations for Public Works (salt purchase), accrued interest on bonds, and;accrued interest on capital lease (if applicable). It was also determined that $6,000 of Sales;Tax is delinquent. Record journal entry;to reclassify asset;15. 1/1/2012 ? Create the debt service fund (including budget) to make;principal and interest payments for the 2011 $2,500,000 bond issuance.


Paper#37689 | Written in 18-Jul-2015

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