Prepare journal entries to record the following transactions and events applicable to the calendar year 2018 operations
Question:
Prepare journal entries to record the following transactions and events applicable to the calendar year 2018 operations of Lily City:
1. The approved budget for the year follows:
Estimated Revenues | |
Property tax revenues | $600,000 |
Licenses and fees | 30,000 |
Appropriations | |
Public safety salaries | $550,000 |
Public safety other expenditures | 90,000 |
2. Property taxes of $750,000 were levied and bills totaling that amount were mailed at the beginning of the year. During the year, $7375000 of property taxes was collected. Licenses and fees collected amounted to $35,000.
3. The Lily City Council authorized (a) a budgetary interchange moving $31,250 from the Public Safety other expenditures appropriation to Public Safety salaries, and (b) an additional appropriation of $12,00 for Public Safety salaries.
4. Salaries paid during the year amounted to $712,500; police officers earned an additional $17,500 during December that will be paid in January.
5. Purchase orders for supplies were placed in the amount of $69,000. The entire amount ordered was received during the year, together with invoices totaling $64,400. The invoices were approved for payment.
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton