Problem 2. Lake City had the following transactions.

July 1, 2016 - Lake City levied $500,000 in property taxes to be paid by its citizens before October 1, 2016. Estimated uncollectibles are 1% of the taxes levied.

July 31, 2016 - During July, $10,000 was collected for licenses and permits.

August 1, 2016 - Received a grant from the state government to pay for a drug enforcement officer for one year. The amount is $50,000 and the officer is to begin on October 1, 2016.

Instructions

Make the necessary journal entries to record the transactions in the General Fund. Lake City has a June 30 year end