Problems

1.Examine the following 2011 transactions for Dwelling Township's General Fund.

a.On July 1, 2011, the city council approves the budget for the General Fund. Included in this budget is $4,900,000 in anticipated property taxes, $32,000,000 in anticipated sales tax revenues, $3,000,000 for utilities, $12,000,000 for salaries and wages, $1,400,000 for rent, 5,600,000 for administrative expenses, and $14,900,000 for capital improvements.

b.On July 5, the purchasing office orders $42,000 of office supplies.

c.On July 7, a cash transfer of $300,000 is made to the Public School Superintendent's office for a new roof on the town high school. The project will begin on August 1.

d.On July 12, $600,000 of computer equipment is purchased with payment due in 30 days.

The computers will have an estimated useful life of 3 years.

e.On July 15, the office supplies ordered on July 7 arrive. The bill is for $43,700 and it is due in 30 days. The supplies are not considered assets, but are treated just the same as utilities.

f.On July 20, property tax bills totaling $5,200,000 are mailed to city residents.

g.On July 25, $78,000 in property tax payments are received by the city tax assessor's office.

h.On July 30, the city receives a payment from the state revenue office for June's sales taxes collections. The check is for $3,400,000.

Required:

Assume you are going to prepare fund-based financial statements. Prepare all the journal entries for the above transactions and events.