Reference no: EM131783692

Prepare journal entries for the City of Toledo's governmental funds to record the following transactions, first for the fund financial statements and then for government-wide financial statements. Indicate which fund is used for each fund-based transaction.

The town council adopts an annual budget for the general fund estimating general revenues of $1.7 million, approved expenditures of $1.5 million, and approved transfers out of $120,000.

The town levies property taxes of $1.3 million. It expects to collect all but 3 percent of these taxes during the year.

The town orders two new police cars at an approximate cost of $110,000.

A transfer of $50,000 is made from the general fund to the debt service fund.

The two police cars are received with an invoice price of $112,000. The voucher has been approved but not yet paid.

Depreciation on the new police cars is computed as $30,000 for the period.

The town receives a $10,000 cash grant to beautify a local park. The grant must be used to cover the specific costs that the town incurs.

The town spends the first $4,000 to beautify the park