QUESTION 2 - MODULE 3. (JOURNAL ENTRY AND GENERAL LEDGER) The Town of Seaside is a small residential community. The Town has three revenue sources, and three programs approved for appropriation by the state government. The Town's fiscal year transaction for 2020 is as follows: Seaside Town General Fund Operating Budget Fiscal Year 2018 Estimated Revenues Property taxes $3,500,000 Seaport taxes 500,000 License and permits 160,000 Appropriations Administration $ 550,000 Public safety 2,800,000 Library 130,000 Operating transactions during the year consist of the following: a. Due to shortage of cash to pay for the obligation, the town council decided to approve the request for applying the loan from the local bank. The town borrowed from the bank using tax anticipating notes amounting to $800,000.4% interest rates. b. Placed orders for materials and supplies for Administration $150,000 Public safety 1,500,000 Library 100,000 C. Sent the bills for the following revenue: Property taxes $3,000,000 Seaport taxes 300,500 d. Received items on order and record the expenditure: Order Amount Bills Amount Administration $80,000 $81.000 Public safety 900.000 899,000 Library 70,000 70,000 4 of 7 approve the request for applying the loan from the local bank. The town borrowed from the bank using tax anticipating notes amounting to $800,000.4% interest rates b. Placed orders for materials and supplies for: Administration $150.000 Public safety 1,500,000 Library 100,000 c. Sent the bills for the following revenue: Property taxes $3,000,000 Seaport taxes 300,500 d. Received items on order and record the expenditure: Order Amount Bills Amount Administration $80,000 $81,000 Public safety 900,000 899,000 Library 70,000 70,000 e. Revised the budget for Administration, a decrease of $40,000 and decrease the estimated revenue of Seaport taxes by $50,000. f. Paid salaries $25,000 cash for library staff. g. Collected revenues as follows: Property taxes 2,500,000 Seaport taxes 250,000 License and permit 120,000 h. Paid the bank loan together with 2-month interest 1. Transfer the appropriation for public safety to administration amounted to $40,000 Required: 1. Prepare the general journal entries necessary to record the budget and operating transactions