The following accounts are applicable to the City of Chu:

1. Cash
2. Budgetary fund balance
3. Fund balance-nonspendable
4. Appropriations
5. Allowance for uncollectible taxes
6. Other financing sources
7. Vouchers payable
8. Contracts payable
9. Expenditures
10. Buildings
11. Interest expense
12. Bonds payable
13. Estimated revenues
14. Estimated other financing sources
15. Estimated other financing uses
16. Encumbrances
17. Revenues
18. Inventory of supplies
19. Property taxes receivable
20. Unearned grant revenue
21. Unavailable grant revenue
22. Unavailable Property taxes

Required: Write your journal entries in the space provided below. Analyze each transaction and prepare journal entries for the fund-based financial statements. Enter the debit first and then the credit. An answer can include more than one account being debited or credited.

City of Chu completed the following transactions.

1. A budget is passed. Funding is from property taxes, transfers in and bond proceeds. A budgetary surplus is expected.
2. A contract is signed with a construction company to build a new city hall.
3. Bonds are issued at face value to finance construction.
4. The city hall is completed. An invoice is received. Payment will be made in twenty days.
5. Unrestricted cash is transferred to the debt service fund. Show entry for the general fund.
6. Property taxes are levied. A small percentage is expected to be uncollectible. Most of the revenue is available. A small percentage is not available.
7. Bought supplies for cash. The purchases method is used.
8. Half of the supplies were used.
9. Received grant money. Eligibility requirements are not met.
10. Received taxes in advance that relate to next year.