Prepare the Journal Entries for Fund Based Financial Statements:

• Decides to build a municipal park and transfers $70,000 into a capital projects fund and immediately expends $20,000 for a piece of land. The creation of this fund and this transfer were made by the highest level of government authority.

• Issues Bonds for Face Value $110,000 for use in creating the new municipal park.

• Assesses property taxes on the first day of the year. The assessment, which is immediately enforceable, totals $600,000. Of this amount, $510,000 will be collected during 2013 and another $50,000 is expected in the first month of 2014. The remainder is expected about halfway through 2014.

• Constructs a building in the park in (b) for $80,000 cash for playing basketball and other sports. It is put into service on July 1 and should last 10 years with no salvage value.

• Buys a new parking deck for $200,000, paying $20,000 cash and signing a long-term note for the rest. The parking deck, which is to go into operation on July 1, is across the street from the civic auditorium and is considered part of that activity.

• Receives a $100,000 cash grant for the city school system that must be spent for school lunches for the poor. Appropriate spending of these funds is viewed as an eligibility requirement of this grant. During the current year, $37,000 of the amount received was properly spent.

• Buys school supplies for $22,000 cash and uses $17,000 of them. The General Fund uses the consumption method.

• Orders a school bus for $99,000.

• Receives the school bus and pays an actual cost of $102,000.

• Charges customers $130,000 for the rental of the civic auditorium. Of this balance, collected $110,000 in cash and will collect the remainder in April 2014.

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