Q3 (10 Points)

The following budget and transactions relate to the General Fund of the Village of Buffalo Falls for the year ended December 31, 2017:

Estimated revenues
Property tax	400,000
Sales tax	350,000
Fines and penalties	250,000
Rental charges	200,000
Appropriations
services	120,000
Travel & Transportations	110,000
Equipments	380,000
Supplies	60,000
Salaries	430,000

If you know that property ownership in the village belongs to four property owners as below:

Edward	140,000
Arthur	120,000
Harrison	80,000
Teddy	60,000

1. During the year taxes were collected in property $60,000 from Edward, $120,000 from Arthur, $60,000 from Teddy, $50,000 from Harrison.

2. Due to a change in economic conditions the village budget committee expect an increase in sales taxes in amount of $50,000.

3. A contract was signed with a CPA to provide the annual audit in the amount of $15,200.

4. Contracted services were performed to the village with invoices amounting to $100,000.

5. The village contracted to have alarm systems (Equipments) installed in the administration building at a cost of $46,000. The systems were installed and the amount was paid.

6. the village ordered different equipments during the year in amount of $320,000.

7. The equipment arrived with an invoice in amount of $325,000.

8. The village paid out salaries in amount of $430,000 to the employees

9. The Village accounting department received from the boardmembers and managers invoices for travel and transportations in amount of $105,000.

10. The village purchased supplies in amount of $60,000 and then paid out to the suppliers two thirds of the amount in cash.

11. The village collected taxes in amount of $395,000 during the year, $270,000 from fines and penalties, $200,000 from rental of its warehouses.

Requirements: record the journal entries related to the budget at the beginning of the year, set up property tax receivables, journalize the transactions above. Then closing entries.