Prepare journal entries for the City of Toledos governmental funds to record the following transactions, first for the fund financial statements and then for government-wide financial statements. Indicate which fund is used for each fund-based transaction.
The town council adopts an annual budget for the general fund estimating general revenues of $1.7 million, approved expenditures of $1.5 million, and approved transfers out of $120,000.
The town levies property taxes of $1.3 million. It expects to collect all but 3 percent of these taxes during the year.
The town orders two new police cars at an approximate cost of $110,000.
A transfer of $50,000 is made from the general fund to the debt service fund.
The two police cars are received with an invoice price of $112,000. The voucher has been approved but not yet paid.
Depreciation on the new police cars is computed as $30,000 for the period.
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