Comprehensive problem 4: Selected transactions of the City of Millner General Fund for the 2015 fiscal year are presented below.

Transactions:

1.The property tax levy was recorded, $2,500,000, of which 4% will probably prove uncollectible.

2.The City borrowed $500,000 from the Blount National Bank on a two-month, 6% note.

3.Ordered and received, on account, supplies costing $13,500.

4.Cash receipts for the levy in # 1 were $2,000,000 (received by due date).

5.$10,000 cash was received by the General Fund from a terminated Capital Projects Fund (CPF) were received.

6.The City repaid the short-term note (Entry #2) when due.

7.General Fund resources of $250,000 were paid to a newly established Capital Projects Fund.The resources will not be repaid to the General Fund.

8.The county purchased a police vehicle for $35,000 and paid cash.

9.Loaned $320,000 to the Capital Projects Fund--to be repaid in 90 days.

10.City employees were paid $38,000.

Requirements:

A.Prepare the general ledger journal entries for the transactions.If no entry is required, do not leave it blank.State "No Entry Required" and briefly explain why.

B.When recording Revenues, classify them as Revenues-Property Taxes or Revenues-Other.When recording expenditures, classify them as Expenditures-Operating, Expenditures-Debt Service, or Expenditures-Capital Outlay.

C.Identify each line item as DEBIT or CREDIT.If it is not apparent if the account is to be debited or credited, it will be marked incorrect.