General and Subsidiary Ledger Entries; Reconciliation The City of Beverly Height
ID: 2471955 • Letter: G
Question
General and Subsidiary Ledger Entries; Reconciliation The City of Beverly Heights General Fund had the following transactions, among others, in 20X7:
1. Appropriations were made as follows: Personal Services $111,400 Contractual Services 8,700 Materials and Supplies 8,500 New Patrol Cars 21,000 Other 12,000 $161,600
2. General Fund cash, $2,000, was paid to a Debt Services Fund to provide for debt service.
3. A long-term note of $8,300, including interest of $1,300, and a short-term note of $2,500 (including $150 interest) came due. The Beverly Heights Council had not made appropriations for these items. The necessary action was taken, and the notes and interest were paid.
4. General Fund cash, $100,000, was paid to an Enterprise Fund to finance construction of a new auxiliary generator, and $50,000 was contributed to establish a central motor pool facility. The Enterprise Fund will repay the General Fund in 10 equal annual installments beginning January 1, 20X9.
5. The council increased the appropriation for personal services by $500.
6. Materials and supplies are accounted for on the purchases method. The beginning inventory was $200; $8,500 of materials and supplies were ordered during the year. A new patrol car costing $20,000 was also ordered.
7. The following expenditures were made by the city: Personal Services $111,700 Contractual Services 8,700 Materials and Supplies 7,500 New Patrol Cars 21,200 Other 11,800 $160,900
8. The new patrol cars were received. The balance of the materials order is expected early next year. The council passed amendments to its appropriations necessary to make the foregoing expenditures legal. The expenditures were paid.
9. Materials and supplies on hand at year end amounted to $1,000.
REQUIRED: (a) Prepare the general journal entries required to record the transactions in the General Ledger and in the Expenditures Ledger of the Beverly Heights General Fund. Assume that there were no outstanding encumbrances at the end of 20X6.
(b) Prepare a trial balance of the Expenditures Ledger and prove its agreement with the General Ledger control accounts.
Explanation / Answer
journal entries General Fund Debt Funnd S. no Particulars Debit ($) Credit($) S. no Particulars Debit ($) Credit($) 1 Estimited Revenues 161600 2 Cash 2000 Personnal Services 111400 Other Financial Service- Transfer in 2000 Contraual Services 8700 ( Cash transfer to Debt Fund) Matrial & Supplies 8500 New Patrol Cars 21000 Other 12000 (Being Appropration Made) 2 Other Financial Service- Transfer Out 2000 Cash 2000 ( Cash transfer to Debt Fund) 3 Long term Note 8300 Shortterm Note 2350 Interst 150 Cash 10800 ( Liablity of Notes Paid Out) Enterprises Fund 4 Eneterprises Fund-transfer out 100000 Cash 100000 Centeral Moter Pool Facality 50000 Eneterprises Fund-transfer in 100000 Cash 100000 (Transfer to Enterprises fund and moter pool facality ) (Transfer to Enterprises fund and moter pool facality ) 5 Estimited Revenues 500 Personnal Services 500 ( Appropriation increased ) 6 Encoumberance-Material 8500 Encoumberance-car 20000 Fund balance reserved for Encoumberance 28500 ( Material and casr ordered) Special Revenue Fund 7 Personnal Services 111700 Contraual Services 8700 Matrial & Supplies 7500 New Patrol Cars 21200 Others 11800 Cash 160900 ( Expenditure Made) 8 Fund balance reserved for Encoumberance 20000 Encoumberance-car 20000 ( Car Received) Encoumberance-Material 800
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