Question

Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2019. Use modified accrual accounting for the General fund only

-The legal budget for the year provided for $900,000 of estimated revenues, $800,000 appropriations, and $50,000 transfer out to debt service fund.

-Issued $ 250,000 of purchase orders outstanding for office supplies.

-Property taxes were levied in the amount of $400,000. It is estimated that 2 percent of the taxes will never be collected.

-Other revenues are collected as cash for $920,000.

- Paid wage expenditures for the current year $220,000.

-Supplies, relating to all of the purchase orders in b), were received along with invoices amounting to $245,000.

-Collections of current property taxes amounted to $350,000.

-Reclassify the uncollected taxes recorded as delinquent.

-Accrued other expenditures for the year (not encumbered) $320,000 as vouchers payable.

-Transfer cash to debt service fund in the amount of $50,000 to prepare debt payments.

-Close the budgetary accounts.

-Close the operational accounts.

-Prepare Statement of Revenues, Expenditure, and change in Fund Balances for the above transactions.

Answer 1

                                           Journal entries in the book of Business

Date	Particulars	LF	Amount (Dr)	Amount (Cr)
	Estimated Revenues    a/c    Dr          To Appropriations a/c           To Transfer to debt service fund a/c           To Unrestricted fund balance a/c (being fund amount recorded)		900000	800000 50000 50000
	There will be no entry for order to purchase
	Property Tax Payable a/c       Dr             To Property Tax a/c (being tax levid)		400000	400000
	Cash   a/c Dr    To Other Revenues a/c ( being other revenues collected)		920000	920000
	Wages    a/c   Dr     To Cash a/c (being wages paid)		220000	220000
	Purchase   a/c   Dr      To Cash a/c       To Discount Received a/c (being office supplies received)		250000	245000      5000
	Property Taxes a/c   Dr        To Cash  a/c (being property tax paid)		350000	350000
	Expenditure   a/c     Dr       To Outstanding Expenditure   a/c (being expenditure outstanding)		320000	320000
	Debt service fund a/c    Dr      To cash   a/c (being cash transfer to debt service fund)		50000	50000

Revenue   A/c

Particulars	Amount Dr	Particulars	Amount Cr
To Property Taxes To Wages To office supply To Outstanding expenses	350000 220000 245000 320000	By Transfer to debt service fund By Other revenues By Discount Received a/c By To Excess of expenditure over income  (Balancing figure)	100000   920000        5000 1 10000
	1135000		1135000