Instructions: Prepare the general ledger journal entries for the transactions. I
ID: 2539796 • Letter: I
Question
Instructions: Prepare the general ledger journal entries for the transactions. If no entry is required, do not leave it blank. State "No Entry Required" and briefly explain why.
Transactions:
1.The City Council approved the following budget for the fiscal year:
Appropriations......................................................................................... 14,000
Estimated Revenues................................................................................. 12,000
Of these amounts, $8,000 is for operating expenditures and $10,000 is for property tax revenues.
2. The property tax levy was recorded, $10,000, of which 3% will probably prove uncollectible.
3. The city ordered $200 in supplies.
4. The City borrowed $500 from the Blount National Bank on a two-month, 6% note.
5. Cash receipts were (see entry #2):
Property Taxes......................................................................................... 8,500
License and Permits................................................................................. 150
Total Receipts..................................................................................... 8,650
6. The City Council revised the budget (see entry #1). Appropriations were reduced $3,000 and Estimated Revenues were reduced $2,000 (Appropriations for Expenditures – Operating were reduced $1,000; property tax revenues were not affected).
7. Of the previous supplies order (Entry #3), 75% of the order was received. The actual cost of the goods received was $135. The amount due the vendor will be paid at a later date.
8. City employees were paid, $25.
9. The city ordered a new police car. The estimated cost is $21.
10. The City repaid the short-term note (see entry #4) when due.
11. Wrote off $100 of taxes receivable as uncollectible (see entry #2).
12. Paid $12 to the Special Revenue Fund to repay it for General Fund employee salaries that were inadvertently recorded as expenditures of that fund.
13. The city received the police car (see entry #9). The actual cost was $22. The vendor will be paid at a later date.
14. The city collected $50 for licenses.
15. The city paid $157 on account.
Explanation / Answer
1 No Entry Required For Budgets no entry is required to pass, since this is not a transaction 2 Property Tax Revenue Receivable $ 9,700 Provision for Uncollectable Revenue $ 300 PropertyTax revenue $ 10,000 3 No Entry Required Since only order has been passed, no entry is required 4 Cash $ 500 6% Note Payable $ 500 5 Cash $ 8,650 Property Tax Revenue Receivable $ 8,500 License and Permits $ 150 6 No Entry Required For Budgets no entry is required to pass, since this is not a transaction 7 Supplies $ 135 Accounts Payable $ 135 8 City Employee Wage $ 25 Cash $ 25 9 No Entry Required Since only order has been passed, no entry is required 10 Note Payable $ 500 Interest Expense $ 30 cash $ 530 11 Property Tax Revenue Written off $ 100 Provision for Uncollectable Revenue $ 100 12 Special Revenue Fund $ 12 Cash $ 12 13 Police Car $ 22 Accounts Payable $ 22 14 Cash $ 50 License fees $ 50 15 Bank $ 157 cash $ 157