Reference no: EM132600988
City of Good Citizen has the following transactions during fiscal year 2009.
(a) The legal budget for the year provided for $5,040,000 of estimated revenues and $4,960,000 appropriations.
(b) Assume there are $ 150,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. Prepare the entries to re-establish the encumbrance.
(c) Property taxes were levied in the amount of $3,200,000. It is estimated that 2.5 percent of the taxes will never be collected. Note: The $3,200,000 is the final calculation. Do not re-calculate the property taxes.
a. Purchase orders were issued for equipment and supplies in the amount of $3,040,000.
b. Supplies, relating to all of the prior year purchase orders ($150,000), were received along with invoices amounting to $144,000.
c. Equipment and supplies related to current year purchase orders ($3,040,000), were received along with invoices amounting to $3,046,000.
d. Accounts payable were paid in the amount of $3,190,000.
e. Salaries were paid in the amount of $1,000,000. Do not use encumbrance account.
f. Collections of current property taxes amounted to $2,750,000.
g. It was estimated that $190,000 in property taxes would be collected in the first 60 days of 2010 and that $180,000 would be collected in later periods.
Required:
Question 1: Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2009