The following transactions relate to the general fund of the city of Lost Angels for the year ending December 31, 2020. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the city applies the purchases method to supplies. Receipt within 60 days serves as the definition of available resources. Collects property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be received within 30 days, and the remainder approximately five months after the end of the year. Spends $200,000 on three new police cars with 10-year lives. The anticipated price was $207,000 when the cars were ordered. The city calculates all depreciation using the straight-line method with no expected residual value. The city applies the half-year convention. Transfers $90,000 of unrestricted cash to a debt service fund. Issues a long-term bond for its $200,000 face value on July 1. Interest at a 10 percent annual rate will be paid each year starting on June 30, 2021. Orders a new computer with a five-year life for $40,000. Pays salaries of $30,000. Another $10,000 is owed to employees at the end of the year but will not be paid for 30 days. Receives the new computer near the end of 2020. The actual cost is $41,000. Payment is to be made in 45 days. Buys supplies for $10,000 in cash. Uses $8,000 of the supplies bought in (h). ---------------------------------------------------------------------------------------------------------------------------------------------------------I had to prepare a general journal and would like to ask if it is correct This is it General Entries Date Account Title and Explanations Debit Credit Dec. 3, 2020 A. Cash 700,000 Property Tax Receivables 100,000 Revenues- Property Tax 750,000 Deferred Revenues 50,000 B. Expenditures- Cars 200,000 Cash 200,000 C. Other Finances Uses- Transfer Out 90,000 Cash 90,000 D. Cash 200,000 Other Financing Sources- Bond Proceeds 200,000 E. Encumbrances 40,000 Fund Balance- Reserved for Encumbrances 40,000 F. Expenditures- Salaries 40,000 Cash 30,000 Salary Payable 10,000 G. Fund Balance- Reserved for Encumbrances 40,000 Encumbrances 40,000 Expenditures- Computer 41,000 Vouchers Payable 41,000 H. Expenditures- Supplies 10,000 Cash 10,000 I. Supplies 2,000 Funds Balance- Nonspendable 2,000 ---------------------------------------------------------------------------------------------------------------------------------------------------------Can you help me prepare the trial balace?
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The following transactions relate to the general fund of the city of Lost Angels for the year ending December 31, 2020. Prepare a statement of revenues, expenditures, and other changes in fund balance for the general fund for the period to be included in the fund financial statements. Assume that the fund balance at the beginning of the year was $180,000. Assume also that the city applies the purchases method to supplies. Receipt within 60 days serves as the definition of available resources.
-
Collects property tax revenue of $700,000. A remaining assessment of $100,000 will be collected in the subsequent period. Half of that amount should be received within 30 days, and the remainder approximately five months after the end of the year.
-
Spends $200,000 on three new police cars with 10-year lives. The anticipated price was $207,000 when the cars were ordered. The city calculates all
depreciation using the straight-line method with no expected residual value. The city applies the half-year convention. -
Transfers $90,000 of unrestricted cash to a debt service fund.
-
Issues a long-term bond for its $200,000 face value on July 1. Interest at a 10 percent annual rate will be paid each year starting on June 30, 2021.
-
Orders a new computer with a five-year life for $40,000.
-
Pays salaries of $30,000. Another $10,000 is owed to employees at the end of the year but will not be paid for 30 days.
-
Receives the new computer near the end of 2020. The actual cost is $41,000. Payment is to be made in 45 days.
-
Buys supplies for $10,000 in cash.
-
Uses $8,000 of the supplies bought in (h).
-
---------------------------------------------------------------------------------------------------------------------------------------------------------I had to prepare a general journal and would like to ask if it is correct
This is it
|
General Entries |
|||
|
Date |
Account Title and Explanations |
Debit |
Credit |
|
Dec. 3, 2020 |
|
|
|
|
A. |
Cash |
700,000 |
|
|
|
Property Tax Receivables |
100,000 |
|
|
|
Revenues- Property Tax |
|
750,000 |
|
|
Deferred Revenues |
|
50,000 |
|
B. |
Expenditures- Cars |
200,000 |
|
|
|
Cash |
|
200,000 |
|
C. |
Other Finances Uses- Transfer Out |
90,000 |
|
|
|
Cash |
|
90,000 |
|
D. |
Cash |
200,000 |
|
|
|
Other Financing Sources- Bond Proceeds |
|
200,000 |
|
E. |
Encumbrances |
40,000 |
|
|
|
Fund Balance- Reserved for Encumbrances |
|
40,000 |
|
F. |
Expenditures- Salaries |
40,000 |
|
|
|
Cash |
|
30,000 |
|
|
Salary Payable |
|
10,000 |
|
G. |
Fund Balance- Reserved for Encumbrances |
40,000 |
|
|
|
Encumbrances |
|
40,000 |
|
|
Expenditures- Computer |
41,000 |
|
|
|
Vouchers Payable |
|
41,000 |
|
H. |
Expenditures- Supplies |
10,000 |
|
|
|
Cash |
|
10,000 |
|
I. |
Supplies |
2,000 |
|
|
|
Funds Balance- Nonspendable |
|
2,000 |
|
|
|
|
|
|
|
|
---------------------------------------------------------------------------------------------------------------------------------------------------------Can you help me prepare the trial balace?
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