Prepare journal entries for the City of Pudding\'s governmental funds to record
ID: 2560838 • Letter: P
Question
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 new truck for the sanitation department was ordered at a cost of $105,250.
The city print shop did $1,800 worth of work for the school system (but has not yet been paid).
An $15 million bond was issued to build a new road.
Cash of $179,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.
The truck ordered in (a) is received at an actual cost of $110,050. Payment is not made at this time.
Cash of $34,300 is transferred from the general fund to the capital projects fund.
A state grant of $40,000 is received that must be spent to promote recycling.
The first $6,050 of the state grant received in (g) is appropriately expended.
Explanation / Answer
journal entries for the City of Pudding's governmental funds
Fund based financial statement
No
General journal
Debit
Credit
a)
General Fund Encumbrances - Truck
$105,250
Encumbrances Outstanding
$105,250
b)
General Fund Expenditures (or Supplies)
$1,800
Due to Internal Service Fund
$1,800
c)
Capital Projects Fund Cash
$15,000,000
Other Financing Sources
$15,000,000
d)
General Fund Other Financing Uses—Transfers Out— Swimming Po
$179,000
cash
$179,000
e)
General Fund Encumbrances Outstanding
$105,250
Encumbrances - Truck
$105,250
f)
Expenditures - Truck
$110,250
vouchers payable
$110,150
g)
General Fund Other Financing Uses—Transfers Out
$34,300
cash
$34,300
h)
Capital Projects Fund Cash
$34,300
Other Financing Sources—Transfers In
$34,300
i)
Special Revenue Fund Cash
$40,000
unearned grant revenue
$40,000
j)
Special Revenue Fund Unearned Grant Revenue
$6,050
revenues
$6,050
GOVERNMENT-WIDE FINANCIAL STATEMENTS
No
General journal
Debit
Credit
a)
No entry is required
b)
No entry is required
c)
cash
$15,000,000
bonds payable
$15,000,000
d)
Transfers Out— Swimming Po
$179,000
cash
$179,000
e)
cash
$105,250
transfer in general fund
$105,250
f)
Expenditures - Truck
$110,250
vouchers or accounts payable
$110,150
g)
No entry required
h)
cash
$34,300
Deferred revenue
$34,300
i)
Expense public service
$40,000
cash
$40,000
j)
Deferred revenue
$6,050
revenues
$6,050
No
General journal
Debit
Credit
a)
General Fund Encumbrances - Truck
$105,250
Encumbrances Outstanding
$105,250
b)
General Fund Expenditures (or Supplies)
$1,800
Due to Internal Service Fund
$1,800
c)
Capital Projects Fund Cash
$15,000,000
Other Financing Sources
$15,000,000
d)
General Fund Other Financing Uses—Transfers Out— Swimming Po
$179,000
cash
$179,000
e)
General Fund Encumbrances Outstanding
$105,250
Encumbrances - Truck
$105,250
f)
Expenditures - Truck
$110,250
vouchers payable
$110,150
g)
General Fund Other Financing Uses—Transfers Out
$34,300
cash
$34,300
h)
Capital Projects Fund Cash
$34,300
Other Financing Sources—Transfers In
$34,300
i)
Special Revenue Fund Cash
$40,000
unearned grant revenue
$40,000
j)
Special Revenue Fund Unearned Grant Revenue
$6,050
revenues
$6,050