Granite City has a fiscal year that begins on July 1, 2015 and ends on June 30, 2016. The following budget became effective for the fiscal year:

Taxes, $6,700,000

License and permits $300,000

Fines and Forfeits, $100,000

Intergovernmental Revenues, $500,000

Issuance of bonds for $2,200,000

Transfer to Other Funds for $350,000

Total Appropriations, $9,200,000.

What is the General Fund budget adoption transaction that should be recorded (use control accounts)? (3 points)

On October 10, 2015, Granite City received notification that it would receive a $175,000 state grant to help fund the purchase of a new fire truck. The city did not anticipate receiving the grant and as a result, the grant was not included in the budget when adopted. However, the capital budget for the city did include an anticipated expenditure for the new fire truck for $350,000. Record the budget amendment transaction only. (.7 points)

On November 1, 2015, Granite City placed a purchase order for the new fire truck at a quoted a price of $350,000. (.7 points)

On December 15, the fire truck was delivered and the city was invoiced for $349,000. (1.6 points)

On December 20, the city paid for the fire truck. (.7 points)

On January 21, 2016, the police department had an unplanned expenditure in the amount of $32,000 for water damage from a burst water pipe. To provide budgetary authorization for this expenditure, the city council voted to transfer a portion of the unexpended appropriation for building repairs from Culture and Recreation to Public Safety. What journal entry would be recorded? (.7 points)

Granite City has a fiscal year that begins on July 1, 2015 and ends on June 30, 2016. Assume that at year-end encumbrances outstanding for normal purchasing activities totaled $25,000. What two entries are recorded on June 30, 2016, when the city elects to disclose the intended acquisition on the balance sheet? (1.6 points)

What closing entry is required regarding only the budget adoption transaction? (3 points)

What two entries are recorded on July 1, 2016? (1 point)