Question
1.The town of Williamsburg approved its budget for the upcoming year and engages in the following transactions. On the accompanying journal paper, enter the appropriate
1.The town of Williamsburg approved its budget for the upcoming year and engages in the following transactions. On the accompanying journal paper, enter the appropriate journal entries for the city for its fiscal year.Williamsberg only records encumbrances for its Supplies appropriation.
a.Williamsbergadopted the following budget for the year:
Revenues:
Property taxes$275,000
Licenses and fees35,000
Appropriations:
Salaries255,000
Supplies40,000
Interest1,500
b.Property tax bills amounting to $275,000 were sent to the property owners.
c.Because property taxes were not due to be received for several months and the town needed cash to finance its activities, Smithburg borrowed $100,000 on tax anticipation notes from a local bank.
d.Smithburg paid salaries in the amount of $75,000.
e.The city sent out two purchase orders for supplies:purchase order A for $6,000 and purchase order B for $5,000.
f.The city received $130,000 from property owners in payment of their property taxes.
g.Smithburg repaid the bank on its borrowing in transaction "c."The amount paid was $101,000, which included interest of $1,000.
h.The city collected $15,000 for fishing licenses.
i.The town received the supplies ordered on purchase order A in transaction "e."All the supplies arrived in good condition and the invoice for $6,100 was approved for payment.
j.The town Treasurer paid the invoice in transaction "I" for $6,100.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started