Question
City of Good Citizen has the following transactions during fiscal year 2009. (a)The legal budget for the year provided for $5,040,000 of estimated revenues and
City of Good Citizen has the following transactions during fiscal year 2009.
(a)The legal budget for the year provided for $5,040,000 of estimated revenues and $4,960,000 appropriations.
(b)Assume there are $ 150,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. Prepare the entries to re-establish the encumbrance.
(c)Property taxes were levied in the amount of $3,200,000. It is estimated that 2.5 percent of the taxes will never be collected.Note: The $3,200,000 is the final calculation. Do not re-calculate the property taxes.
a.Purchase orders were issued for equipment and supplies in the amount of $3,040,000.
b.Supplies, relating to all of the prior year purchase orders ($150,000), were received along with invoices amounting to $144,000.
c.Equipment and supplies related to current year purchase orders ($3,040,000), were received along with invoices amounting to $3,046,000.
d.Accounts payable were paid in the amount of $3,190,000.
e.Salaries were paid in the amount of $1,000,000.Do not use encumbrance account.
f.Collections of current property taxes amounted to $2,750,000.
g.It was estimated that $190,000 in property taxes would be collected in the first 60 days of 2010 and that $180,000 would be collected in later periods.
Required:Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2009
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