In: Accounting
Journal entries to record miscellaneous transactions and events
Prepare journal entries to record the following transactions and events applicable to the calendar year 2018 operations of Lily City:
1. The approved budget for the year follows:
Estimated Revenues | |
Property tax revenues | $600,000 |
Licenses and fees | 30,000 |
Appropriations | |
Public safety salaries | $550,000 |
Public safety other expenditures | 90,000 |
2. Property taxes of $600,000 were levied and bills totaling that amount were mailed at the beginning of the year. During the year, $590,000 of property taxes was collected. Licenses and fees collected amounted to $28,000.
3. The Lily City Council authorized (a) a budgetary interchange moving $25,000 from the Public Safety other expenditures appropriation to Public Safety salaries, and (b) an additional appropriation of $10,000 for Public Safety salaries.
4. Salaries paid during the year amounted to $570,000; police officers earned an additional $14,000 during December that will be paid in January.
5. Purchase orders for supplies were placed in the amount of $60,000. The entire amount ordered was received during the year, together with invoices totaling $56,000. The invoices were approved for payment.
Transaction | General Journal | Debit | Credit |
1 | Estimated revenues- Property taxes | 600,000 | |
Estimated revenues- licenses and fees | 30,000 | ||
Budgetary fund balance | 10,000 | ||
Appropriations - Public safety salaries | 550,000 | ||
Appropriations - Public safety other expenditures | 90,000 | ||
2 | Property taxes receivable | 600,000 | |
Revenue - property taxes | 600,000 | ||
Cash | 590,000 | ||
Property taxes receivable | 590,000 | ||
Cash | 28,000 | ||
Revenues - Licenses and fees | 28,000 | ||
3 | Appropriations - Public safety other expenditures | 25,000 | |
Appropriations - Public safety salaries | 25,000 | ||
Budgetary fund balance | 10,000 | ||
Appropriations - Public safety salaries | 10,000 | ||
4 | Expenditures - Public safety salaries | 570,000 | |
Cash | 570,000 | ||
Expenditures - Public safety salaries | 14000 | ||
Accrued salaries payable | 14000 | ||
5 | Encumbrances | 60,000 | |
Budgetary fund balance reserved for encumbrances | 60,000 | ||
Budgetary fund balance reserved for encumbrances | 60,000 | ||
Encumbrances | 60,000 | ||
Expenditures - Public safety other expenditures | 56,000 | ||
Vouchers payable | 56,000 |