A budget is passed for all ongoing activities. Revenue is anticipated to be $1,0
ID: 2484374 • Letter: A
Question
A budget is passed for all ongoing activities. Revenue is anticipated to be $1,029,000 with approved spending of $630,000 and operating transfers out of $324,000.
A contract is signed with a construction company to build a new central office building for the government at a cost of $6.2 million. A budget for this project has previously been recorded.
The new building is completed. An invoice for $6.2 million is received and paid.
A portion of the bonds comes due and $1.15 million is paid. Of this total, $155,000 represents interest. The interest had not been previously accrued.
Citizens' property tax levies are assessed. Total billing for this tax is $765,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90% is assumed to be collectible in this period with receipt of an additional 6% during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.
The county received investments valued at $345,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.
Prepare the entries first for fund financial statements and then for government-wide financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.)
FUND FINANCIAL STATEMENTS
1. (Transaction a.) Record the budget for the year - General Fund.
2. (Transaction b.) Record encumbrances outstanding - Capital Projects Fund.
3. (Transaction c.) Record sale of bonds - Capital Projects Fun.
4. (Transaction d-1.) Record entry to remove encumbrance - Capital Projects Fund.
5. (Transaction d-2.) Record incoice received for building constructed - Capital Projects Fund.
6. (Transaction d-3.) Record invoice received for building constructed - Capital Projects Fund.
7. (Transaction e-1.) Record amount set aside to pay off bonds - General Fund.
8. (Transaction e-2.) Record transfer in into debt service fund - Debt Service Fund.
9. (Transaction f.) Record payoff of bonds - Debt Service Fund.
10. (Transaction g.) Record property taxes collectible - General Fund.
11. (Transaction h.) Record cash received from toll road - Special Revenue Fund.
12. (Transaction i.) Record donations received - Permanent Fund.
Explanation / Answer
Since, the journal entries for fund financial statements are required, the same have been provided below in the same order (transaction wise) as mentioned in the question.
_________
The journal entries for fund financial statements are given below:
Transaction Account Titles Debit Credit a) General Fund Estimated Revenues Control $1,029,000 Appropriations Control $630,000 Estimated Other Financing Uses – Operating Transfers $324,000 Budgetary Fund Balance (1029000 – 630000 – 324000) $75,000 b) Capital Projects Fund Encumbrances Control $6,200,000 Fund Balance-Reserved for Encumbrances $6,200,000 c) Capital Projects Fund Cash $6,200,000 Other Financing Sources Control $6,200,000 d)-1 Capital Projects Fund Fund Balance-Reserved for Encumbrances $6,200,000 Encumbrances Control $6,200,000 d)-2 Expenditures Control $6,200,000 Contracts Payable $6,200,000 d)-3 Contracts Payable $6,200,000 Cash $6,200,000 e)-1 General Fund Other Financing Uses Control $1,150,000 Cash $1,150,000 e)-2 Debt Service Fund Cash $1,150,000 Other Financing Resources $1,150,000 f) Debt Service Fund Expenditures Control-Bonds $995,000 Expenditures Control-Interest $155,000 Cash $1,150,000 g) General Fund Property Taxes Receivable $765,000 Revenues Control (765,000*96%) $734,400 Allowance for Uncollectible Taxes (765,000*4%) $30,600 h) Special Revenue Fund Cash $173,000 Revenues Control $173,000 i) Permanent Fund Investments $345,000 Fund Balance-Reserved for Park Beautification $345,000Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.