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h . The first $ 5 , 0 0 0 of the state grant received in ( g ) is expended as intended. LO 1

h. The first $5,000 of the state grant received in (g) is expended as intended.
LO 16-2,16-5,16-7,16-8,16-9,16-11
eXcel
Prepare journal entries for a local government to record the following
transactions, first for fund financial statements and then for government-wide
financial statements.
a. The government sells $900,000 in bonds at face value to finance the
construction of a new warehouse.
b. A $1.1 million contract is signed for construction of the warehouse. The
commitment is reported, if allowed.
c. The government transfers cash of $130,000 in unrestricted funds for the
eventual payment of the debt in (a).
d. The government receives equipment for the fire department with a cost of
$12,000. When ordered, an anticipated cost of $11,800 was recorded.
e. Supplies to be used in the schools are bought for $2,000 cash. The consumption
method is used.
f. The state awards a grant of $90,000 to supplement police salaries. The money
will be paid to reimburse the government but only after the supplement
payments have been made.
g. The government mails property tax assessments to its citizens. The total
assessment is $600,000, although officials anticipate that 4 percent will never be
collected. The government holds an enforceable legal claim to this money. It
can be spent immediately.
of Copeland.
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