Reference no: EM132641901

Question - The town of Williamsburg approved its budget for the upcoming year and engages in the following transactions. On the accompanying journal paper, enter the appropriate journal entries for the city for its fiscal year. Williamsberg only records encumbrances for its Supplies appropriation.

a. Williamsberg adopted the following budget for the year:

Revenues:

Property taxes $275,000

Licenses and fees 35,000

Appropriations:

Salaries 255,000

Supplies 40,000

Interest 1,500

b. Property tax bills amounting to $275,000 were sent to the property owners.

c. Because property taxes were not due to be received for several months and the town needed cash to finance its activities, Smithburg borrowed $100,000 on tax anticipation notes from a local bank.

d. Smithburg paid salaries in the amount of $75,000.

e. The city sent out two purchase orders for supplies: purchase order A for $6,000 and purchase order B for $5,000.

f. The city received $130,000 from property owners in payment of their property taxes.

g. Smithburg repaid the bank on its borrowing in transaction "c." The amount paid was $101,000, which included interest of $1,000.

h. The city collected $15,000 for fishing licenses.

i. The town received the supplies ordered on purchase order A in transaction "e." All the supplies arrived in good condition and the invoice for $6,100 was approved for payment.

j. The town Treasurer paid the invoice in transaction "I" for $6,100.