PROBLEM 1

The Town has two revenue sources, property taxes and charges for service; and two programs, administration and public safety. The Towns fiscal year 20XX is as follows:

The Town

General Fund

Operating Budget

Fiscal Year 20XX

Estimated Revenues

Property taxes $3,000,000

Charges for services 577,000

$3,577,000

Appropriations

Administration $ 345,000

Public safety 2,300,000

2,645,000

Budgeted Increase in Fund Balance $ 932,000

Operating transactions during the year consist of the following:

1. Placed orders for materials and supplies for:

Administration 220,000

Public safety 2,200,000

2. Collected revenues of:

Property taxes 2,700,000

Charges for services 560,000

3. Received items on order for:

Administration 180,000

Public safety 2,100,000

4. Paid cash for items received for:

Administration 180,000

Public safety 2,100,000

5. Received items on order for:

Administration 20,000

Public safety 100,000

6. Paid cash for items received for:

Administration 20,000

Public safety 100,000

7. Collected revenues of:

Property taxes 200,000

Charges for services 10,000

Required: Prepare the general journal entries necessary to record the budget and operating transactions 1- 7.