Problem 2. The City of Franklin has adopted the General Fund budget for the next fiscal year. The details of the budget are:

Revenue and other financial sources:
Property taxes	$500,000
Fines	50,000
State and federal grants	75,000
Estimated receipt of funds from the closing of the Municipal
Swimming Pool, account for as an Enterprise Fund	15,000
Estimated receipt from Water Utility Fund to finance
Expenditures (not in lieu of property taxes)	50,000
Expenditures and other uses:
Equipment purchases	$150,000
General operations	450,000
Estimated transfer to Debt Service fund to pay interest on
bond indebtedness	30,000

Instructions

Prepare journal entries to record the budget for the City of Franklin.