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ANSWER ALL QUESTIONS RELATED TO THE PROBLEM TO FULLY SOLVE!! a. 0 Preparation of journal entries for a number of transactions Prepare journal entries for
ANSWER ALL QUESTIONS RELATED TO THE PROBLEM TO FULLY SOLVE!!
a. 0 Preparation of journal entries for a number of transactions Prepare journal entries for the following transactions for the City of Riverview, ID. a. The City Council approved its budget for the year for estimated revenues of $3,700,000 and appropriations of $3,500,000. b. Revenues received in cash amounted to $3,600,000 for the year. c. The City issues $500,000 of purchase orders. d. Received part of the goods ordered in Part c that were expected to cost $450,000 along with an invoice of $445,000. The remaining $50,000 of purchase orders are still outstanding and unpaid at year-end. e. The City paid $2,000,000 of wages to City employees during the year. These wages were not evidenced by a formal encumbrance since they are recurring in nature. Journal Entries Ref. Description Debit Credit ESTIMATED REVENUES 3,700,000 APPROPRIATIONS 0 3,500,000 BUDGETARY FUND BALANCE 0 200,000 b. Cash 3,600,000 0 Revenues 0 3,600,000 C. ENCUMBRANCES 500,000 0 Fund balance - assigned 0 500,000 d. Fund balance - assigned 500,000 0 ENCUMBRANCES 0 500,000 To reverse the previous entry. BUDGETARY FUND BALANCE 445,000 0 BUDGETARY FUND BALANCE 0 445,000 Revenues 2,000,000 Expenditures 0 2,000,000 e. 0
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