Question
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. The government
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements.
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The government sells $1,045,000 in bonds at face value to finance construction of a warehouse.
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A $1.12 million contract is signed for construction of the warehouse. The commitment is required if allowed.
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A $174,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a).
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Equipment for the fire department is received with a cost of $15,845. When it was ordered, an anticipated cost of $15,600 had been recorded.
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Supplies to be used in the schools are bought for $1,850 cash. The consumption method is used.
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A state grant of $102,000 is awarded to supplement police salaries. The money will be paid to reimburse the government after the supplement payments have been made to the police officers.
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Property tax assessments are mailed to citizens of the government. The total assessment is $656,000, although officials anticipate that 2 percent will never be collected. There is an enforceable legal claim for this money and the government can use it immediately.
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