9 Part 2 of 2 Required information [The following information applies to the questions displayed below.] The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31. 1. The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,130,000 and appropriations were $2,003,000. 2. Property taxes in the amount of $2,070,000 were levied. It is estimated that $15,500 of the taxes levied will be uncollectible. 3. A General Fund transfer of $31,500 in cash and $313,000 in equipment (with accumulated depreciation of $78,000) was made to establish a central duplicating internal service fund. 4. A citizen of Lynnwood donated marketable securities with a fair value of $930,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after-school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31 was $53,000. 5. The city's utility fund billed the city's General Fund $138,000 for water and sewage services. As of December 31, the General Fund had paid $137,000 of the amount billed. 6. The central duplicating fund purchased $11,000 in supplies. 7. Cash collections recorded by the general government function during the year were as follows: Property taxes Licenses and permits User charges $1,938,000 48,000 34,500 8. During the year, the internal service fund billed the city's general government function $22,200 for duplicating services and it billed the city's utility fund $14,600 for services. 9. The city council decided to build a city hall at an estimated cost of $5,130,000. To finance the construction, 5 percent bonds were sold at the face value of $5,130,000. A contract for $4,630,000 has been signed for the project; however, no expenditures have been incurred as of December 31. 10. The general government function issued a purchase order for $38,500 for computer equipment. When the equipment was received, a voucher for $33,200 was approved for payment and payment was made. Required b. Using the funds you identified in part a, prepare journal entries to properly record each transaction for the fiscal year ended December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Fund or Activity General Journal Debit 1. The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,130,000 and appropriations were $2,003,000. Record the budget for the fiscal year ended December 31, when the estimated revenues are $2,130,000 and appropriations were $2,003,000. General Fund 2. Property taxes in the amount of $2,070,000 were levied. It is estimated that $15,500 of the taxes levied will be uncollectible. General Fund 2a Record the $2,070,000 property taxes levied and $15,500 expected collectibles in the General Fund. Credit 2b Governmental Activity Record the $2,070,000 property taxes levied and $15,500 expected collectibles in the Governmental Activities general ledger. 3. A General Fund transfer of $31,500 in cash and $313,000 in equipment (with accumulated depreciation of $78,000) was made to establish a central duplicating internal service fund. General Fund Record the general fund transfer of $31,500 in cash and $313,000 in equipment with accumulated depreciation of $78,000. 3b Internal service fund Record the transfer of $31,500 in cash and $313,000 in equipment with accumulated depreciation of $78,000 in internal service fund. 4. A citizen of Lynnwood donated marketable securities with a fair value of $930,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after-school program for children, which is sponsored by the culture and recreation function. Revenue eamed and received as of December 31 was $53,000. 4a 4b Permanent fund Record the receipt of $930,000 marketable securities received as donation in the permanent fund. Record the $53,000 interest revenue earned and received in the permanent fund. 4c Record the transfer of $53,000 cash. 9 Required information 4d Part 2 of 2 After-School Fund Record the transfer of $53,000 finance to be used for conducting an after-school program for children. 4e Governmental Activity 41 Record the receipt of $930,000 marketable securities received as donation in the Governmental Activities general ledger. Record the receipt of $40,000 interest revenue earned in the Governmental Activities general ledger. 5. The city's utility fund billed the city's General Fund $138,000 for water and sewage services. As of December 31, the General Fund had paid $137,000 of the amount billed. Enterprise fund 5a Record the $138,000 services received for water and sewage in the enterprise fund. 5b Record the $137,000 received from the general fund in the enterprise fund. 5c General Fund Record the $138,000 services received for water and sewage in the general fund. 5d 5e Governmental Activity 51 Record the $137,000 payment made to the enterprise fund in the general fund. Record the $138,000 services received for water and sewage in the Governmental Activities general ledger. Record the $137,000 received from the general fund in the Governmental Activities general ledger. 6. The central duplicating fund purchased $11,000 in supplies. Internal service fund Record the $11,000 purchase of supplies in the internal service fund. Governmental 6b Record the $11,000 purchase of supplies in the Governmental Activities general ledger. Activity 7. Cash collections recorded by the general government function during the year were as follows: property taxes, $1,938,000; licenses and permits, $48,000; user charges, $34,500. 7a General Fund Record the cash collections of $1,938,000 for property taxes: $48,000 for licenses and permits; $34,500 for user charges in the general fund. 7b Governmental Activity Record the cash collections of $1,938,000 for property taxes: $48,000 for licenses and permits; $34,500 for user charges in the Governmental Activities general ledger. 8. During the year, the internal service fund billed the city's general government function $22,200 for duplicating services and it billed the city's utility fund $14,600 for services. 8a Internal service fund Record the $22,200 duplicating services and $14,600 services billed by the internal service fund. 8b Enterprise fund Record the 14,600 services billed by the internal service fund in the enterprise fund. General Fund Record the $22,200 duplicating services by the internal service fund in the general fund. 8d Governmental Activity Record the 14,600 services billed by the internal service fund in the Governmental Activities general ledger. 8. During the year, the internal service fund billed the city's general government function $22,200 for duplicating services and it billed the city's utility fund $14,600 for services. Internal service fund Record the $22,200 duplicating services and $14,600 services billed by the internal service fund. 8a 8b Enterprise fund Record the 14,600 services billed by the internal service fund in the enterprise fund. 8c General Fund Record the $22,200 duplicating services by the internal service fund in the general fund. 8d Governmental Activity Record the 14,600 services billed by the internal service fund in the Governmental Activities general ledger. 9. The city council decided to build a city hall at an estimated cost of $5,130,000. To finance the construction, 5 percent bonds were sold at the face value of $5,130,000. A contract for $4,630,000 has been signed for the project; however, no expenditures have been incurred as of December 31. 9a Capital projects fund Record the issue of 5% bonds with a face value of $5,130,000 in capital projects fund. 9b Record the $4,630,000 contract signed for building a city call at an estimated cost of $5,130,000 in capital projects fund. 9c Governmental Activity Record the issue of 5% bonds with a face value of $5,130,000 in the Governmental Activities general ledger. 10. The general government function issued a purchase order for $38,500 for computer equipment. When the equipment was received, a voucher for $33,200 was approved for payment and payment was made. 10a General Fund Record the issue of purchase order for $38,500 for computer equipment in the general fund. 10b Record the $33,200 payment made for purchase of computer equipment in the general fund. Governmental 10c Activity Record the $33,200 payment made for purchase of computer equipment in the Governmental Activities general ledger