Record the appropriate journal entries for Johnson City for the following transactions. The city uses encumbrance accounting and maintains a provision for uncollectible accounts.

Note: Each transaction may involve more than one fund.

1. The general operating budget was enacted. It included Estimate Revenues of $700,000,

Appropriations of $625,000, and Estimated Transfers Out of $55,000.

2. The city sold $4 million in general obligatoon bonds to finance the construction of a new office building.

3. General property taxes were levied for $300,000. The city estimates 90% will be collected. None of the levied taxes are restricted.

4. The city received a $500,000 bequest that must be maintained. Only the interest may be expended to support the Creative Arts Program. The city established a permanent fund and deposited the donation.

5. The General Fund made a transfer to the Debt Service Fund of $50,000. The Debt Service Fund paid $20,000 principal and $1,200 interest to bondholders.

6. The police department ordered 4 motorcycles at a cost of $30,000 each.

7. The Creative Arts Bequest Fund invested the entire amount of principal received. They subsequently received interest earnings of $25,000.

8. A $1 million contract was signed with a developer as part of the office building construction.

9. Two motorcycles were received along with an invoice for $61,000. The invoice was paid.

10. The office building developer submitted a progress billing for $50,000. The contract includes provisons for a 10% retained percentage.

11. Property taxes of $270,000 were collected and property taxes of $10,000 were written off.

12. The developer's invoice (item 10) was paid.

13. Prepare the closing entries for the General Fund budget.