Prepare the journal entries necessary for the following transactions. For each transaction you must identify the fund in which the entries are recorded. Make the entries only for the Fund-Based Financial Statements for the fiscal year ended 6/30/2021. 1. The board of commissioners of the Cosmo City adopted a General Fund budget for the year ending June 30, 2021, which indicated revenues of $5,100,000, bond proceeds of $620,000, appropriations of $1,900,000 for salaries, $800,000 for
Prepare the
For each transaction you must identify the fund in which the entries are recorded.
Make the entries only for the Fund-Based Financial Statements for the fiscal year ended 6/30/2021.
1. The board of commissioners of the Cosmo City adopted a General Fund budget for the year ending June 30, 2021, which indicated revenues of $5,100,000, bond proceeds of $620,000, appropriations of $1,900,000 for salaries, $800,000 for advertising, $400,000 for supplies, and $800,000 for utilities, and also operating transfers out of $980,000.
2. Cosmo City collected $22,000 from parking meters.
3. On March 12, 2021, Cosmo City ordered a new computer at an anticipated cost of $414,000. The computer was received on April 16 with an actual cost of $416,200. Payment was subsequently made on May 15, 2021.
4. Property taxes of 1,800,000 are levied for Cosmo City. The city expects that 5% will be uncollectible. Of the levied amount, $50,000 will be collected next year, after more than 60 days.
5. On June 14, 2021, Cosmo City agreed to transfer cash of $102,000 from the General Fund to provide permanent financing for a municipal swimming pool that will be viewed as an Enterprise Fund. The cash was transferred on June 30.
6. The city purchased $28,000 of office supplies. During the year all supplies were used.
7. The city issued a $1,200,000 bond was issued on October 1, 2020 to purchase a new building. The bonds carried a 6% interest rate and are due in 10 years.
8. The city acquires a building for $2,100,000 cash and immediately begins renovations on it.
9.
10. The city transfers $18,000 cash from the General Fund to the Debt Service Fund.
11. The city pays interest of $26,000 on debt.
12. The city assesses and collects $35,000 from the city’s citizens for a sidewalk project.
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