Journal EntriesVarious FundsThe following transactions represent practical situations frequently encountered in accountingfor municipal governments. Each transaction is independent of the others.1. The City Council of Bernardville adopted a budget for the general operations of the governmentduring the new fiscal year. Revenues were estimated at $695,000. Legal authorizationsfor budgeted expenditures were $650,000.2. Taxes of $160,000 were levied for the special revenue fund of Millstown. One percent wasestimated to be uncollectible.3. (a) On July 25, 2009, office supplies estimated to cost $2,390 were ordered for the citymanager's office of Bullersville. Bullersville, which operates on the calendar year,does not maintain an inventory of such supplies.(b) The supplies ordered July 25 were received on August 9, 2009, accompanied by an invoicefor $2,500.4. On October 10, 2009, the general fund of Washingtonville repaid to the utility fund aloan of $1,000 plus $40 interest. The loan had been made earlier in the fiscal year.5. A prominent citizen died and left 10 acres of undeveloped land to Harper City for a futureschool site. The donor's cost of the land was $55,000. The fair value of the land was $85,000.6. (a) On March 6, 2009, Dahlstrom City supervised the issue of 6% special assessmentbonds payable March 6, 2014, at face value of $90,000. Interest is payable annually.Dahlstrom City, which operates on the calendar year, will supervise the use of the proceedsto finance a curbing project. The City has made no commitments and has notobligated itself in any manner with respect to the payment of principal and intereston the debt.(b) On October 26, 2009, the full $84,000 cost of the completed curbing project wasrecorded. Also, appropriate closing entries were made with regard to the project.7. (a) Conrad Thamm, a citizen of Basking Knoll, donated common stock valued at $22,000to the City under a trust agreement. Under the terms of the agreement, the principalamount is to be kept intact; use of revenue from the stock is restricted to financingcollege scholarships for needy students.(b) On December 14, 2009, dividends of $1,100 were received on the stock donated byMr. Thamm.8. (a) On February 23, 2009, the Town of Lincoln, which operates on the calendar year, issued5% general obligation bonds with a face value of $300,000 payable February 23,2019, to finance the construction of an addition to the City Hall. Total proceeds were$308,000.922 Chapter 18 Introduction to Accounting for State and Local Governmental UnitsLO2 LO8Jeter_int_Ch18_851-927hr.qxd 16-11-2009 9:05 Page 922Problems 923(b) On December 31, 2009, the addition to the City Hall was officially approved, the fullcost of $297,000 was paid to the contractor, and appropriate closing entries weremade with regard to the project. (Assume that no entries have been made with regardto the project since February 23, 2009.)Required:For each transaction, prepare the necessary journal entries for all the funds involved.No explanation of the journal entries is required. Use the following headings for yourworkpaper.Transaction JournalNumber Entries Dr. Cr. FundIn the far right column, indicate in which fund each entry is to be made, using the codingbelow:FundsGeneral GSpecial revenue SRCapital projects CPDebt service DSEnterprise EInternal service ISPermanent fund P