Reference no: EM132725693

Problem 1: Prepare general journal entries, including appropriate interest accruals, to record the following transactions in the general ledger of the General Fund of Wick Township.

1. Township Council adopted the budget for the fiscal year:

Budgeted revenues, $23 million
Appropriations, $24 million

2. Township levied property taxes for the current year, $20 million. All except the expected uncollectible portion (1%) are expected to be collected by year end.

3. Taxes of $12 million were collected before the due date. The remaining taxes were declared past due.

4. Taxes receivable of $7 million were collected.

5. Fines and forfeits of $300,000 were collected in cash.

6. Police uniforms were ordered at an estimated cost of $15,000.

7. Salaries and wages paid, $10 million; accrued but not paid, $580,000.

8. Three million dollars was loaned to an Enterprise Fund. It is to be repaid in 5 years.

9. Borrowed $500,000 on a 6 month, 12%, interest-bearing note due three months after year-end. The note is not considered general long-term debt.

10. Received half of the police uniforms that were ordered. Actual cost was $7,450.

11. Temporarily invested $400,000 of idle cash in securities.

12. Purchased goods on account from an Internal Service Fund department, $20,000.