Journal Entries - General Fund

Sun City incurred the following transactions during the year.Prepare the journal entries to record each transaction in theGeneral Fundand include an explanation for each entry. Skip a line between each journal entry.

a)The Sun City Council passed a resolution approving a general operating budget of $19,500,000 for the fiscal year.Total revenues are estimated to be $20,000,000.

b)Property taxes of $14,000,000 were levied and bills were sent to residents. It is estimated that 2% of these taxes will be uncollectible.

c)$1,500,000 was designated for transfer to the capital projects fund for partial funding of a new municipal building to be constructed.

d)An order was placed with a vendor for the purchase of new textbooks for Sun's public school system. The texts are expected to arrive later in the month at a cost of $100,000.

e)The cash transfer was made to the capital projects fund for the municipal building construction.

f)The textbooks arrived and a bill was received for $105,000.