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Several independent financial activities of a governmental unit are given below. 1. 2. 3. 4. 5. 6. Revenue from the sale of licenses and permits
Several independent financial activities of a governmental unit are given below. 1. 2. 3. 4. 5. 6. Revenue from the sale of licenses and permits for the first two months totaled $12,000. Land that had been donated previously was sold for $96,000. An order was placed for the purchase of a new fire engine at a price of $133,000. Bonds with a face value of $538,000 were issued at par value to finance a new park. A$239,000 grant was received from the federal government to help improve the local schools. The new fire engine was received and accepted. The approved price, however, was $142,000 rather than $133,000. Prepare the journal entries needed to account for each transaction in the General Fund. (Credit account titles are automatically inden No. Account Titles and Explanation Debit Credit 12000 T 1. Cash T Revenue 12000 TEncumbrances 96000 Fund Balance - Unassig 96000 3. Encumbrances 133000 Fund Balance - Assigne 133000 538000 538000 239000 2 239000 6. Fund Balance - Assigned 142000 142000 Encumbrances (To record engine received) Expenditures - Current Yez 133000 T Vouchers Payable 133000 (To remove encumbrances)
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