Prepare journal entries for the purchase of a grader for $375,000:

1. Purchased from the General Operating Fund.
2. Purchased from the Equipment Reserve
3. Paid by the General Operating Cash Account but funded by the General Reserve Fund.

• Use the account codes below which have been pre-selected from the Chart of Accounts in the Appendices (you’re welcome!).
• Remember to identify the fund in use (ie Capital Fund, General Operating, Reserve Fund, etc.) and include posting descriptions.

TIP 1: Capital expenditures made through the General or Utility Fund are coded to Transfer (or contribution) to Capital.

TIP 2: Purchases made from the General Reserve Fund flows through the General Operating Fund.

Selected accounts for use:
General Operating Fund (GOF)	Equipment Reserve Fund
102 Cash on Deposit	301 Equip Reserve Bank
221 Due from General Reserve	390 Equip Reserve Fund
940 Transfer from General Reserve
9320 Transfer to Capital	General Reserve Fund
	320 Due to General Operating Fund
General Capital Fund	380 General Reserve Fund Balance
441 Fixed Asset
592 Capital Surplus