Reference no: EM131817058
1) Several independent financial activities of a governmental unit are given below.
1. Revenue from the sale of licenses and permits for the first two months totaled $15,000.
2. Land that had been donated previously was sold for $100,000.
3. An order was placed for the purchase of a new fire engine at a price of $130,000.
4. Bonds with a face value of $500,000 were issued at par value to finance a new park.
5. A $250,000 grant was received from the federal government to help improve the local schools.
6. The new fire engine was received and accepted. The approved price, however, was $140,000 rather than $130,000.
Required:
Prepare the journal entries needed to account for each transaction in the General Fund.
2) Following is the pre-closing trial balance for the General Fund of the City of Doyle.
Doyle City
The General Fund
General Ledger Trial Balance
December 31, 2016
Cash $400,000
Certificates of Deposit 350,000
Due from State Government 112,000
Due from Other Funds 30,000
Taxes Receivable 774,000
Estimated Revenue 3,110,000
Expenditures 1,960,000
Encumbrances 734,000
Transfers to Other Funds 90,000
Expenditures-2015 55,000
Estimated Uncollectible Taxes $30,000
Vouchers Payable 64,000
Due to Other Funds 27,000
Fund Balance-Unassigned 760,000
Fund Balance-Assigned (Note 1) 784,000
Appropriations 2,700,000
Revenue 3,210,000
Transfers from Other Funds 40,000
$7,615,000 $7,615,000
Note 1: Includes $50,000 of encumbrances from 2015.
Required:
Prepare in general journal form the closing entries for the General Fund of Doyle City.