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For years beginning January 1 , 2 0 1 , the City of Hope will finance its parks and recreation activities with a special property

For years beginning January 1,201, the City of Hope will finance its parks and
recreation activities with a special property tax levy and it will account for resources
related to parks and recreation in a special revenue fund. During 201, it engaged in
the following transactions:
The parks and recreation employees earned $4.5 million in wages and salaries.
Of this amount, the city paid $4.1 million in 201 and will pay the balance
sometime in 202
Parks and recreation employees earned $.26 million in vacation leave and
were paid for $0.20 million. The city estimates that it will pay the entire
balance in early 202.
During 201, the city received in parks and recreation supplies $.70 million,
used $.55 million and paid $.50 million. The city uses the consumption
method to account for supplies inventory
In January 201, the city purchased $1 million in parks and recreation
equipment. It paid $0.20 million in cash and gave an installment note for the
balance. The first payment on the note ( $.30 million plus interest of $0.05
million) is due on January 12,202.
Required:
Demonstrate how Wages and Salaries is recorded in Journal Entry under
Governmental Fund vs. Government-Wide Financial Statement respectively?
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