Question

1. The city collects $1 million of taxes for an independent fire district located within the city.

Journal entry:

2. The city spends $1.2 million on street maintenance using the proceeds of a city gas tax dedicated for road and highway maintenance and improvements.

Journal entry:

3. The city receives a bequest of $1.5 million. The donor’s will, requires that the principal amount be invested in perpetuity and that the earnings on the investment be used to maintain a city park to be renamed for the donor.

Journal entry:

4. The city collects water and sewer fees of $4.2 million.

Journal entry:

5. The city pays $4 million to a contractor for work on a new bridge.

Journal entry:

6. _The city receives $1.3 million to invest on behalf of the county.

Journal entry:

1. The city pays its police officers wages of $325,000.

Journal entry:

1. The city pays $2.2 million in bond interest on its general obligation debt.

Journal entry:

I want the journal entry for each of the transaction above thank you

Answer 1

A. The city collects $1 million of taxes for an independent fire district located within the city.

Particulars	Debit in $	Credit in $
Cash a/c Dr.	1 Million
To Fire district		1 Millions
( Being amount received as liability )

B.The city spends $1.2 million on street maintenance using the proceeds of a city gas tax dedicated for road and highway maintenance and improvements.

Particulars	Debit in $	Credit in $
City gas tax a/c Dr.	1.2 millions
To Cash a/c		1.2 millions
(Being amount paid for city gas tax dedicated for road maintanance)

C.The city receives a bequest of $1.5 million. The donor’s will, requires that the principal amount be invested in perpetuity and that the earnings on the investment be used to maintain a city park to be renamed for the donor.

Particulars	Debit in $	Credit in $
Bequest a/c Dr.	1.5 millions
To City park reserve a/c		1.5 millions
(Being amount received by bequest to be used to maintained city park)

D. The city collects water and sewer fees of $4.2 million.

Particulars	Debit in $	Credit in $
Cash a/c Dr.	4.2 millions
To water and sewer fees		4.2 millions
(Being amount receives as fees for water and sewer)

E. The city pays $4 million to a contractor for work on a new bridge.

Particulars	Debit in $	Credit in $
Contractor a/c Dr.	4 millions
To Cash		4 millions
(Being amount paid to contractor for construction of new bridge)

F. The city receives $1.3 million to invest on behalf of the country.

Particulars	Debit in $	Credit in $
Cash a/c Dr.	1.3 million
To Investment trust		1.3 millions
(Being amount received for make investment on behalf of country Its a liability untill investment maid)

G. The city pays its police officers wages of $325,000.

Particulars	Debit in $	Credit in $
wages to police officers a/c Dr.	325000
To cash		325000
(Being amount paid as wages to police officers)

H. The city pays $2.2 million in bond interest on its general obligation debt.

Particulars	Debit in $	Credit in $
Interest on boad a/c Dr.	2.2 Millions
To cash		2.2 Millions
(Being interest on bond paid)