Sun City incurred the following transactions during the year. Prepare the journal entries to record each transaction in the General Fund and include an explanation for each entry. Skip a line between each journal entry.     The Sun City Council passed a resolution approving a general operating budget of $19,500,000 for the fiscal year. Total revenues are estimated to be $20,000,000. Property taxes of $14,000,000 were levied and bills were sent to residents. It is estimated that 2% of these taxes will be uncollectible. $1,500,000 was designated for transfer to the capital projects fund for partial funding of a new municipal building to be constructed. An order was placed with a vendor for the purchase of new textbooks for Sun’s public school system. The texts are expected to arrive later in the month at a cost of $100,000. The cash transfer was made to the capital projects fund for the municipal building construction. The textbooks arrived and a bill was received for $105,000.

Question

Journal Entries – General Fund

Sun City incurred the following transactions during the year. Prepare the journal entries to record each transaction in the General Fund and include an explanation for each entry. Skip a line between each journal entry.    

  1. The Sun City Council passed a resolution approving a general operating budget of $19,500,000 for the fiscal year. Total revenues are estimated to be $20,000,000.

  2. Property taxes of $14,000,000 were levied and bills were sent to residents. It is estimated that 2% of these taxes will be uncollectible.

  3. $1,500,000 was designated for transfer to the capital projects fund for partial funding of a new municipal building to be constructed.

  4. An order was placed with a vendor for the purchase of new textbooks for Sun’s public school system. The texts are expected to arrive later in the month at a cost of $100,000.

  5. The cash transfer was made to the capital projects fund for the municipal building construction.
  6. The textbooks arrived and a bill was received for $105,000.

 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Hello questions is attached, thanks.

A: Given: The master budget is given below,

Q: The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distr...

A:          Comparative balance sheet is a financial statement shows its financial position over a peri...

Q: Gyro Company manufactures Products T and W and is operating at full capacity. Manufacturing Product ...

A: Contribution margin: The contribution margin can be stated on a gross or per-unit basis. It represen...

Q: Thomas is a cost accountant and business analyst for Dashing Design Company​ (DDC), which manufactur...

A: Variance analysis: In budgeting, variance analysis is summarized as the analysis of the study of the...

Q: On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, an...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: Accounting Question

A: 1. Common stock issued 220,000 shares 2. Preferred stock issued 150,000 shares 3. $440,000 4. ...

Q: Dual allocation is a cost allocation approach that separates direct and indirect costs, tracing the ...

A: Dual allocation method: It involves two type of cost pools, fixed cost and variable cost.

Q: Times interest earned A company reports the following: Income before income tax expense $3,120,00...

A: Ratio analysis is a method of measuring the financial position of the organization with different ki...

Q: Prepare the cost of goods sold section for Adams Gift Shop. The following amounts are known:   Begin...

A: Cost of goods sold is an expense account, which will be reported on the income statement. 

Q: On January 1, 2020, Swifty Limited paid $561,003.30 for 10% bonds with a maturity value of $540,000....

A: Journal entries refers to the process of systematic documentation of financial activities of a compa...

Q: .  If Canace Company, with a break-even point at $368,000 of sales, has actual sales of $460,000, wh...

A: Break-even analysis is a technique widely used by the production department. It helps to determine t...

Q: Current Position Analysis Sherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood b...

A: Ratio analysis is a method of measuring the financial position of the organization with different ki...

Q: Answers in page 237

A: A fixed rate of interest is paid on the bond issued till the time of its maturity. The rate paid on ...

Q: 1.  why companies need to transfer price and advantages? 2. explain the transfer pricing method that...

A: “Since you have asked multiple question, we will solve the first question for you. If you want any s...

Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by B...

A: Amount Bonnie should record for the asset received=Book value of asset given up+cash received=$120,0...

Q: Rogan Company's total sales on account for the year amounted to $327,000. The company, which uses th...

A: Estimated bad debts = 1 percent of its credit sales = $327,000 x 1% = $32,700

Q: 1. The adjusted trial balance columns of the worksheet for Savaglia Company are as follows. SAVAGLIA...

A: Income statement reports revenues and expenses, whereas balance sheet reports assets, liabilities, a...

Q: You have decided to throw a party next weekend for 19 friends. The friends are going to bring health...

A: Concept used : The planning to buy the bottles is depends upon the number of Total bottel required a...

Q: On March 1, Dillmore Corporation had office supplies on hand of $900. During the month, Dill-more pu...

A: This numerical has covered the concept of Adjusting Entries. The adjusting entry was passed at the e...

Q: Make the four journal entries required to close the books.

A: Journal entry:   It is a systematic record of a financial transaction of an organization recorded in...

Q: A key ethical issue in cost allocation involves costing in an international context, because the cho...

A: Direct costs are easily traceable but indirect costs are allocated which requires estimates and invo...

Q: Accounts Receivable Analysis (Picture below is shown that 26.07 is wrong answer I also did try 26 da...

A: Ratio analysis is a method of measuring the financial position of the organization with different ki...

Q: For the current year, Power Cords Corp. expected to sell 42,000 industrial power cords. Fixed costs ...

A: Click to see the answer

Q: Pedroni Fuel Company is a small oil services company owned and operated by Ray Zorzi. On October 31,...

A: Adjusting entries: These entries are passed at the end of a particular accounting or financial year ...

Q: On January 1, 2014 Mechanics Credit Union (MCU) issued 8%, 20-year bonds payable with face value of ...

A:  

Q: Pharmos Incorporated is a Pharmaceutical Company which is considering investing in a new production ...

A: Click to see the answer

Q: If sales commissions are increased, which cash budgets are affected?

A: Click to see the answer

Q: Thomas, who is 49 years old, received a distribution from his Roth account of his employer’s 401(k) ...

A: The correct answer is (b) $40,000 taxable , $4000 tax penalty  Distribution of Roth account is quali...

Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Delta are as follo...

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the ...

Q: The following is extracted from the books of White Co as at 31 December 2019: Net current assets 6 0...

A: Formula: Capital = Assets - Liabilities. Deduction of liabilities from Assets derives the capital.

Q: Solvency and Profitability Trend Analysis Addai Company has provided the following comparative infor...

A: Return on total assets = (Net Income + Interest expense)/ Average Total assets where, Average Total ...

Q: Which of the following statements is correct regarding self-employment tax? W-2 income earned durin...

A: W-2 is a salary and wages form. In addition to that, W-2 also reports federal taxes and other taxes ...

Q: Hello question is attached, thanks.

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is...

Q: Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The ...

A: Production plan: Production plan involves planning related to proper allocation of employees, resour...

Q: Nillson's Nursery uses the direct write-off method for recording bad debts. Required: Journalize the...

A: Journal:   Journal is the book of original entry. Journal consists of the day today financial transa...

Q: 4. An equipment costs P8,000.00 has an economic life of 8 years and a salvage value of P400.00 at th...

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called depr...

Q: Listed below are body temperatures from five different subjects measured at 8 AM and again Temperatu...

A:           Temperature is a degree of hotness and coldness measured with a thermometer . 

Q: Now prepare a production budget for April, May, and June. Lugo Company Production Budget April, May,...

A: Production budget:- Production budget is the budget that is prepared by production companies for kno...

Q: Marion was a CFP® professional who was a general partner of a hedge fund. She placed most of her cli...

A: 1. Principle of Fairness: According to this principle, there should be complete transparency and hon...

Q: sub-part 4 to be answered equired information[The following information applies to the questions dis...

A: Solution: Process Costing is a determination of cost for each process.  It is mainly used in a manuf...

Q: Hello, I need formulas explaining the answers, thank you.

A: Dividend distribution is a method of distributing profit among the stockholder of the organization. ...

Q: [The following information applies to the questions displayedbelow.]Shadee Corp. expects to sell 630...

A: Answer 1

Q: Bert has extracted the following list of balances from his general ledger at 31 October 20X5: $ Sale...

A: We have the following information: Sales: $258,542 Opening inventory: $9,649 Purchases: $142,958 Ex...

Q: Compute for Materials yield variance

A: Materials yield variance occurs when there is more than 1 raw material used and standard ratio of mi...

Q: Requirement 4. No preferred dividends are in arrears . Journalize the declaration of a $ 700,000 div...

A: Dividend distribution is a method of distributing profit among the stockholder of the organization. ...

Q: Performing services for cash will have the following effects on the components of the basic accounti...

A: The accounting equation refers to the equation of the balance sheet. It is based on the method of to...

Q: Hello question is attached, thanks.

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is...

Q: Elaborate on the internal and external uses of financial statement analysis.

A: Financial Statement:   They are annual reports of an organization summarizing the financial activiti...