1. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities.

2. During the month of July, the Town of Lynton recorded the following information related to purchases:

At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received the same as the actual cost of the items.

Required

1. (1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts.
2. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (2) Show entries for the subsidiary ledger accounts.

\begin{tabular}{|c|c|c|c|} \hline & & \begin{tabular}{l} mount of \\ Purchase \\ Order \end{tabular} & Actual Cost \\ \hline General government & $ & 553,000 & $493,000 \\ \hline Public safety & & 738,200 & 723,013 \\ \hline Public works & & 957,845 & 466,480 \\ \hline Culture and recreation & & 57,270 & 57,320 \\ \hline Total purchase orders and invoices & & ,306,315 & $1,739,813 \\ \hline \end{tabular} Journal entry worksheet Record the issuance of the purchase orders and contracts. Note: Enter debits before credits. Show entries for the subsidiary ledger accounts. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ TOWN OF LYNTON } \\ \hline \multicolumn{4}{|c|}{ Encumbrances Ledger } \\ \hline Account/Description & \begin{tabular}{c} Encumbrances \\ Increase \\ Dr \end{tabular} & \begin{tabular}{c} Encumbrances \\ Decrease \\ Cr \end{tabular} & \begin{tabular}{c} Encumbrances \\ Balance \\ Dr(Cr) \end{tabular} \\ \hline \multicolumn{4}{|l|}{ General Government } \\ \hline \multicolumn{4}{|l|}{ Public Safety } \\ \hline \multicolumn{4}{|l|}{ Public Works } \\ \hline \multicolumn{4}{|l|}{ Culture and Recreation } \\ \hline \multicolumn{4}{|c|}{ TOWN OF LYNTON } \\ \hline \multicolumn{4}{|c|}{ Expenditures Ledger } \\ \hline Account/Description & \begin{tabular}{l} Expenditures \\ Dr(Cr) \end{tabular} & \begin{tabular}{c} Expenditures \\ Balance \\ Dr(Cr) \end{tabular} & \begin{tabular}{c} Balance \\ Cr(Dr) \end{tabular} \\ \hline \multicolumn{4}{|l|}{ General Government } \\ \hline \multicolumn{4}{|l|}{ Public Safety } \\ \hline \multicolumn{4}{|l|}{ Public Works } \\ \hline Culture and Recreation & & & \\ \hline \end{tabular} Req b1 Req b2 Show entries in subsidiary ledger accounts. Record the expending of appropriations. Note: Enter debits before credits. \begin{tabular}{|c|c|} \hline 1. & Operating grants that can be used at the discretion of the city council. \\ \hline 2. & Federal grants restricted for highway construction. \\ \hline 3. & Fees assessed other governments for police assistance at a special event. \\ \hline 4. & Interest and penalties on delinquent property taxes. \\ \hline 5. & A special assessment for snow removal. \\ \hline 6. & Building permits. \\ \hline 7. & Motor vehicle fuel taxes restricted for road repair. \\ \hline 8. & Library fines. \\ \hline 9. & Investment earnings restricted for art preservation. \\ \hline 10. & Gift for the purchase of new playground equipment. \\ \hline \end{tabular}