Question

Instructions: Prepare the general ledger journal entries for the transactions. If no entry is required, do not leave it blank. State "No Entry Required" and briefly explain why.

Transactions:

1.The City Council approved the following budget for the fiscal year:

Appropriations.........................................................................................        14,000

Estimated Revenues.................................................................................        12,000

Of these amounts, $8,000 is for operating expenditures and $10,000 is for property tax revenues.

2. The property tax levy was recorded, $10,000, of which 3% will probably prove uncollectible.

3. The city ordered $200 in supplies.

4. The City borrowed $500 from the Blount National Bank on a two-month, 6% note.

5. Cash receipts were (see entry #2):

Property Taxes.........................................................................................          8,500

License and Permits.................................................................................             150

      Total Receipts.....................................................................................          8,650

6. The City Council revised the budget (see entry #1). Appropriations were reduced $3,000 and Estimated Revenues were reduced $2,000 (Appropriations for Expenditures – Operating were reduced $1,000; property tax revenues were not affected).

7. Of the previous supplies order (Entry #3), 75% of the order was received. The actual cost of the goods received was $135. The amount due the vendor will be paid at a later date.

8. City employees were paid, $25.

9. The city ordered a new police car. The estimated cost is $21.

10. The City repaid the short-term note (see entry #4) when due.

11. Wrote off $100 of taxes receivable as uncollectible (see entry #2).

12. Paid $12 to the Special Revenue Fund to repay it for General Fund employee salaries that were inadvertently recorded as expenditures of that fund.

13. The city received the police car (see entry #9). The actual cost was $22. The vendor will be paid at a later date.

14. The city collected $50 for licenses.

15. The city paid $157 on account.

Answer 1

1	No Entry Required
	For Budgets no entry is required to pass, since this is not a transaction
2	Property Tax Revenue Receivable	$    9,700
	Provision for Uncollectable Revenue	$        300
	PropertyTax revenue		$ 10,000
3	No Entry Required
	Since only order has been passed, no entry is required
4	Cash	$        500
	6% Note Payable		$        500
5	Cash	$    8,650
	Property Tax Revenue Receivable		$    8,500
	License and Permits		$        150
6	No Entry Required
	For Budgets no entry is required to pass, since this is not a transaction
7	Supplies	$        135
	Accounts Payable		$        135
8	City Employee Wage	$          25
	Cash		$          25
9	No Entry Required
	Since only order has been passed, no entry is required
10	Note Payable	$        500
	Interest Expense	$          30
	cash		$        530
11	Property Tax Revenue Written off	$        100
	Provision for Uncollectable Revenue		$        100
12	Special Revenue Fund	$          12
	Cash		$          12
13	Police Car	$          22
	Accounts Payable		$          22
14	Cash	$          50
	License fees		$          50
15	Bank	$        157
	cash		$        157