Gold City, a local government entity, was organized on January $1,2016$ and adopted the

following accounting procedures for its General Fund:

$$ All transactions of $$1,000$ or more with non$-$City entities, which will not be paid

within $60$ days, are to be encumbered.

$$ All transactions with outside $($non$-$City$)$ entities are to be processed through the

voucher system.

$$ Budgets will be entered into the accounts.

$$ The City$$s fiscal year is maintained on a calendar year basis.

$$ The City will take maximum advantage of discounts offered; otherwise, the City will

pay its bills on the dates due.

Required: Prepare journal entries for Gold City$$s General Fund $($GF$)($only$),$ in professional form

for the independent events $($unless otherwise noted$)$ shown on each of the following

dates. Note carefully the date when money actually moves. Use account titles used in

the Lecture Notes. Do not abbreviate. Reference each journal entry to the

corresponding typical journal entry listed in the Lecture Notes for the General Fund

topic $($e$.$g$.1/1/21$ transaction below deals with $$recording the budget$$ and therefore

corresponds to journal entry $$a$.$ in the Lecture Notes$).$ The format for preparing

journal entries for the below listed transactions is as follows $($remember$,$

debits are flushed to the left and credits are indented to the right$)$:

Date J$/$E reference Account Description Debit Credit

$5/1/21($G$)$ Expenditures $100$

Vouchers Payable $100$

$1/1/21$ The Gold City Council approved both revenue and appropriation budgets for the

$2021$ fiscal year: a $$125,000$ revenue budget and a $$90,000$ appropriations

budget. The City also planned for an operating transfer of $$3,600$ to its Debt

Service fund and it planned that a new Special Revenues Fund would be started

$($and its transactions completed$)$ by the end of the fiscal year. Gold City

estimated that $$2,500$ would be returned to the GF from a Capital Projects Fund

for its closed project, and that $$1,500$ would be returned $($to the GF$)$ from the

Special Revenue Fund after completing its transactions for the year. Gold City

also planned that $$7,500$ would be used to establish a new Internal Service Fund.

$1/16/21$ Purchased, and paid for, supplies from a local vendor for $$750.(2)$

$1/30/21$ Collected traffic fines of $$1,300.$

$2/22/21$ GF borrowed $$60,000$ at $6\%$ interest, for $8$ months, from its Sanitation Enterprise

Fund.

$3/15/21$ Issued purchase order to General Motors for a police car $($$$15,000)$ and fire

truck $($$$20,000)$; estimated delivery date is $9/15/21.$

$3/30/21$ Recorded the liability and paid salaries of $$4,300($ignore withholding taxes and

employer$$s contribution to social security$).(2)$

$3/31/21$ Received approval to establish two new funds: an Internal Service Fund to

provide purchasing services, and a Parks Beautification Special Revenue fund.

GF sent $$5,000$ to the new Special Revenue Fund and $$7,000$ to the new Internal

Service Fund.

$4/5/21$ Approved payment of $$3,600$ to Debt Service Fund from general tax revenue to

assist in repaying bond indebtedness.

$4/15/21$ GF received a bill, authorized payment, and paid attorney fees of $$1,500,$ $$700$ of

which is the responsibility of the Special Revenues Fund. GF billed the Special

Revenues Fund for its $$700$ share. $(3)$

$4/20/21$ Sent check for $$3,600$ to Debt Service Fund $($approved on $4/5/21).$

$5/1/21$ Borrowed $$20,000$ on a short$-$term tax anticipation note from Macy National

Bank $($a non$-$City entity$)$ at $9\%$ interest.

$5/3/21$ GF received $$700$ check from Special Revenues Fund for $4/15/21$ billing.

$5/10/21$ Received a billing of $$2,800$ from the City$$s Internal Service Fund for

purchasing services rendered during April $2021.$

$5/27/21$ Approved $5/10/21$ billing from Internal Service Fund for payment.

$5/30/21$ Sent $$2,800$ check which had been approved for payment on $5/27/21$ to Internal

Service Fund.

$5/31/21$ Sold a truck for $$1,200$ which GF had purchased new on $6/1/16$ for $$7,000.$

$6/16/21$ Made payment of $$5,500$ for use of machinery that had been acquired under a

short$-$term operating lease. $(2)$

$6/30/21$ Recorded the liability, and paid salaries of $$3,925$ for the current period $($ignore

withholding and employer$$s share of social security$).(2)$

$8/17/21$ Received $$2,300$ to close a Capital Projects Fund, started in $2018,$ which had

completed construction of the new City Court House Building.

$9/1/21$ Mailed proper tax bills for $$60,000$ to property owners; the Comptroller estimated

that $4\mathrm{.}0\%$ would be uncollectible.

$9/15/21$ Received the fire truck, ordered on $3/15/21,$ from General Motors. The invoice

amount was $$22,000$ and was payable by $9/29/21.$ The invoice was approved

for payment. $(2)$

$9/29/21$ Mailed $$22,000$ check to General Motors for fire truck received $9/15/21.$

$9/30/21$ Repaid $5/1/21$ short$-$term borrowing from Macy National Bank with interest. $(2)$

$10/5/21$ Received $$37,000$ cash as payments of property taxes.

$10/22/21$ Repaid short$-$term loan from Enterprise Fund with interest $($see $2/22/21$ loan

transaction$).$

$10/25/21$ Bought office furniture $($general fixed asset$)$ for GF use for $$7,200$; mailed check

to vendor