Olivia Village was recently incorporated and began financial operations on July 1, 20X2, the beginning of its

Question:

Olivia Village was recently incorporated and began financial operations on July 1, 20X2, the beginning of its fiscal year. The following transactions occurred during this first fiscal year, July 1 . $20 \times 2$ to June 30, 20X3:

1. The village council adopted a budget for general operations for the fiscal year ending June 30 , 20X3. Revenue was estimated at $\$ 400,000$. Legal authorizations for budgeted expenditures were $\$ 394,000$.

2. Property taxes were levied in the amount of $\$ 390,000$; it was estimated that 2 percent of this amount would prove uncollectible. These taxes are available as of the date of levy to finance current expenditures.

3. During the year, a resident of the village donated marketable securities valued at $\$ 50,000$ to the village under the terms of a trust agreement. The terms of the trust agreement stipulated that the principal amount is to be kept intact. The use of revenue generated by the securities is restricted to financing college scholarships for needy students. Revenue earned and received on these marketable securities amounted to $\$ 5.500$ through June 30 , 20X3.

4. A general fund transfer of $\$ 5.000$ was made in order to establish an internal service fund to provide for a permanent investment in inventory.
5. The village decided to install lighting in the village park, and a special assessment project was authorized to install the lighting at a cost of $\$ 75,000$. The city is obligated if the property owners default on their special assessments. Special assessment bonds were issued in the amount of $\$ 72,000$, and the first year's special assessment of $\$ 24,000$ was levied against the village's property owners. The remaining $\$ 3,000$ for the project will be contributed from the village's general fund.
6. The special assessments for the lighting project are due over a three-year period, and the first year's assessments of $\$ 24,000$ were collected. The $\$ 3,000$ transfer from the village's general fund was received by the lighting capital projects fund.
7. A contract for $\$ 75,000$ was let for the installation of the lighting. The capital projects fund was encumbered for the contract. On June 30, 20X3, the contract was completed and the contractor was paid.
8. During the year, the internal service fund purchased various supplies at a cost of $\$ 1,900$.
9. Cash collections recorded by the general fund during the year were as follows:

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The allowance for estimated uncollectible taxes is adjusted to $\$ 4,000$.
10. The village council decided to build a village hall at an estimated cost of $\$ 500.000$ to replace space occupied in rented facilities. The village does not record project authorizations. It was decided that general obligation bonds bearing interest at 6 percent would be issued. On June $30,20 \times 3$, the bonds were issued at face value of $\$ 500,000$, payable in 20 years. No contracts have been signed for this project, and no expenditures have been made, nor has an annual operating budget been prepared.
11. A fire truck was purchased for $\$ 15,000$ and the voucher was approved and paid by the general fund. This expenditure was previously encumbered for $\$ 15,000$.
\section*{Required}
Prepare journal entries to record properly each of these transactions in the appropriate fund or funds of Olivia Village for the fiscal year ended June 30, 20X3.
Use the following funds: gemerat fond, capital prejects fund, internal service fund, and privatepurpose trust fund. Each journal entry should be numbered to correspond to the transactions. Do not prepare closing entries for any fund. Your answer sheet should be organized as follows:

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