Interfund transactions:

Interfund transactions are reciprocal or nonreciprocal. Prepare journal entries to record the following interfund transactions:

A. The General fund loans the Capital Projects fund $200,000 to hire an architect to start planning a building.

B. The Enterprise fund bills the General fund $30,000 for electrical power provided.

C. The General fund pays the Enterprise fund power bill of $30,000

D. The General fund perminately transfers $200,000 in capital to an Enterprise fund to help with start-up expenses.

E. The General fund transfers $25,000 to the Debt Service fund to pay principal and interest on long-term debt.

Putting it all together

Prepare journal entries to record the following transactions for a city:

a. The budget is enacted into law permitting $3,000,000 in spending and estimating $2,950,000 in revenues will be received.

b. Property tax revenues of $2,800,000 are levied during the fiscal period and 5% are estimated to be uncollectable.

c. Employee salaries are paid totaling $1,900,000 during the fiscal period.

d. Purchase orders are issued totaling $1,000,000 during the fiscal period.

e. All good are received from the purchase orders with invoices of $990,000.

f. Property taxes are collected in the amount of $2,700,000.

g. Property taxes become delinquent and 2% of the delinquent taxes are estimated to be uncollectible.

h. H. License, permit and fine revenues of $100,000 are received during the fiscal period.

i. The vouchers payable outstanding are paid.

j. Ofice supplies are ordered just before fiscal year-end (but not received) for $20,000.

k. The budgetary accounts are closed at fiscal year-end.

MBA Level class