80.2K

Verified Solution

Link Copied!

Prepare journal entries for the City of Pudding's governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements. a. A new truck for the sanitation department was ordered at a cost of $94,250. b. The city print shop did $1,800 worth of work for the school system (but has not yet been pold). c. An) $7 million bond was issued at face value to build a new rond. d. The city transfers cash of $206,000 from its general fund to provide permanent financing for a municipal swimming pool that will be maintained as an enterprise fund. e. The truck ordered in (a) is received but at an actual cost of $97,850. Payment is not made at this time. f. The city transfers cash of $40,600 from its general fund to a capital projects fund. g. The city receives a state grant of $30,000 that must be spent to promote recycling by the citizens h. The first $5,050 of the state grant received in (a) is expended as intended. FUND FIN STMT GOVT WIDE FIN STMT Prepare journal entries for the City of Pudding's governmental funds to record the fund financial statements. (Select the appropriate fund for each situation when required. Enter your answers in dollars, not in millions. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Transaction Fund/Activity General Journal Debit Credit a. A new truck for the sanitation department was ordered at a cost of $94.250. General Fund Record encumbrances outstanding Encumbrances-truck 4 94,250 Encumbrances outstanding 94,250 a O b. The city print shop did $1,800 worth of work for the school system (but has not yet been paid) b. General Fund Record amount due to internal service fund Expenditures supplies Due to internal service fund 1,800 1,800 c. A(n) $7 million bond was issued at face value to build a new road. C. Capital Projects Fund Record sale of bonds. Cash Other financing sources - bonds proceeds 7,000,000 7,000,000 d. The city transfers cash of $206,000 from its general fund to provide permanent financing for a municipal swimming pool that will be maintained as an enterprise fund. d. General Fund Record authorization of transfer for construction Other financing uses - tranffers out-swimming pool 206.000 Cash 206,000 > a. e. The truck ordered in (a) is received but at an actual cost of $97,850. Payment is not made at this time. General Fund Record entry to remove encumbrance. Encumbrances outstanding Encumbrances - truck 94,250 94,250 Record receipt of truck Expenditures - truck Vouchers payable E 97,850 97,850 The city transfers cash of $40,600 from its general fund to a capital projects fund, f General Fund Record cash received from general fund to capital project fund Other financing uses - transfers out Cash 40,600 40,600 Capital Projects Fund Record transfer in to capital project fund. Cash Other financing sources - transfers in 40,600 40,600 g. The city receives a state grant of $30,000 that must be spent to promote recycling by the citizens. 9 Special Revenue Fund Record state grant received for promoting recycling Cash Uneamed grant revenue 30,000 30,000 h. The first $5,050 of the state grant received in (g) is expended as intended. h. Special Revenue Fund Record cash received from the state grant Unearned grant revenue Revenues S 5,050 5,050 Record the expenditure of the grant for recycling Revenues Cash 5,050 5,050 Debit Credit General Journal a. A new truck for the sanitation department was ordered at a cost of $94.250. a. Governmental Activities Record encumbrances outstanding No journal entry required b. The city print shop did $1,800 worth of work for the school system (but has not yet been paid). b. Governmental Activities Record amount due to internal service fund. No journal entry required CA(n) $7 million bond was issued at face value to build a new road. Governmental Activities Record sale of bonds. Cash Bonds payable 7,000,000 IS 7,000,000 d. The city transfers cash of $206,000 from its general fund to provide permanent financing for a municipal swimming pool that will be maintained as an enterprise fund. d. Governmental Activities Record authorization of transfer for construction. Transfers out - swimming pool 206,000 Cash 206,000 Business-Type Activities Record payment of cash for construction Cash Transfers in-general fund 40,600 40,600 X e. e. The truck ordered in (a) is received but at an actual cost of $97,850. Payment is not made at this time. Governmental Activities Record receipt of truck Equipment - trucks Vouchers payable 97,850 O 97.850 f. The city transfers cash of $40,600 from its general fund to a capital projects fund. t. Governmental Activities Record cash received from general fund to capital project fund. No journal entry required 9. The city receives a state grant of $30,000 that must be spent to promote recycling by the citizens. 9 Governmental Activities Record state grant received for promoting recycling Cash Deferred revenues 30,000 30,000 h. The first $5,050 of the state grant received in (g) is expended as intended. h. Governmental Activities Record cash received from the state grant Expense - public service Cash 5,050 5,050 Record the expense of the grant for recycling Deferred revenues Revenues 3 5,050 5,050

Answer & Explanation Solved by verified expert

See Answer