• Record the journal entries for each of the transactions listed for the city of Watertower Park. The trial balance for the city on January 1, 20X7, is given next. Debit Credit Cash $10,000 Delinquent taxes receivable 32,000 Allowance for uncollectible delinquent taxes $15,000 Tax liens receivable 6,000 Allowance for uncollectible tax liens 2,000 Supplies inventory 8,000 Voucher payable 13,000 Fund balance- -reserved for encumbrances 7,000 Fund balance- -reserved for inventory 8,000 Fund balance- -unreserved, designated 11,000 Totals $56,000 $56,000 The transactions to be recorded (without explanations) are: 1. A budget is adopted that includes estimated revenues of $375,000, expenditures of $300,000, and other financing uses of $60,000. 2. Encumbrances of the prior year were included in the budget estimates. The prior year encumbrances are reinstated on the books. 3. Current property taxes are levied at $350,000 with a 2% allowance for uncollectible property taxes. 4. Delinquent property taxes of $20,000 are collected plus $1,200 in interest. The allowance for uncollectible delinquent taxes is adjusted. 5. Property to which tax liens apply is sold for $3,500, and the account is closed. 6. Current property taxes are collected in the amount of $340,000. 7. Remaining current property taxes are considered delinquent, previous delinquent property taxes are converted to tax liens. 8. The city is notified that it has been awarded a state grant in the amount of $45,000. 9. Orders are placed for equipment at an estimated cost of $23,000. 10. Vouchers are recorded in the amount of $290,000. Included in this amount are $7,000 of items encumbered last year, items estimated to cost $20,000 that were encumbered this year, and inventory purchases of $15,000. 11. Vouchers of $290,000 are paid. 12. The physical inventory taken at year end is $6,000. The inventory and appropriate reserved fund balance are adjusted. 13. $59,000 is transferred to the debt service fund.