Question

Prepare journal entries for the City of Pudding’s governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.)

a.	A new truck for the sanitation department was ordered at a cost of $105,500.
b.	The city print shop did $1,200 worth of work for the school system (but has not yet been paid). Assume print shop is a governmental activity.
c.	An $12 million bond was issued to build a new road.
d.	Cash of $191,000 is transferred from the General Fund to provide permanent financing for a municipal swimming pool that will be viewed as an Enterprise Fund.
e.	The truck ordered in (a) is received at an actual cost of $107,600. Payment is not made at this time.
f.	Cash of $32,900 is transferred from the General Fund to the Capital Projects Fund.
g.	A state grant of $60,000 is received that must be spent to promote recycling.
h.	The first $9,400 of the state grant received in (g) is appropriately expended.

FUND-BASED FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Answer 1

Fund based financial statements.
Event	Account titles and Explanation	Debit	Credit
a	Genral fund
	Encumbrances - Truck	$     105,500
	Encumbrances Outstanding		$     105,500
b	General Fund
	Expenditures (or Supplies)	$         1,200
	Due to Internal Service Fund		$         1,200
C	Capital Projects Fund
	Cash	$12,000,000
	Other Financing Sources—Bonds Proceeds		$12,000,000
d	General Fund
	Other Financing Uses—Transfers Out—
	Swimming Pool	$     191,000
	Cash		$     191,000
e	General Fund
	Encumbrances Outstanding	$     105,500
	Encumbrances - Truck		$     105,500
	Expenditures - Truck	$     107,600
	Vouchers Payable		$     107,600
f	General Fund
	Other Financing Uses—Transfers Out	$       32,900
	Cash		$       32,900
	Capital Projects Fund
	Cash	$       32,900
	Other Financing Sources—Transfers In		$       32,900
g	Special Revenue Fund
	Cash	$       60,000
	Unearned Grant Revenue		$       60,000
h	Special Revenue Fund
	Unearned Grant Revenue	$         9,400
	Revenues		$         9,400
	Expenditures	$         9,400
	Cash		$         9,400
Government-wide financial statements.
Event	Account titles and Explanation	Debit	Credit
a	No Journal Entry Required
	No Journal Entry Required
b	No Journal Entry Required
	No Journal Entry Required
c	Cash	$12,000,000
	Bonds Payable		$12,000,000
d	Transfers Out - Swimming Pool	$     191,000
	Cash		$     191,000
	Cash	$       32,900
	Transfers In - General Fund		$       32,900
e	Equipment - Trucks	$     107,600
	Vouchers or Accounts Payable		$     107,600
f	No Journal Entry Required
	No Journal Entry Required
g	Cash	$       60,000
	Deferred Revenues		$       60,000
h	Expense - Public Service	$         9,400
	Cash		$         9,400
	Deferred Revenues	$         9,400
	Revenues		$         9,400