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Only need part a answered for the requirements in the second picture for the jou

ID: 2336092 • Letter: O

Question

Only need part a answered for the requirements in the second picture for the journal entries. 4-8 Part B. Additional Operating Transactions, Special Topics, and End-of-Year General Fund Balance Sheet. Part B continues transactions of the City of Macon's General Fund. The following transactions occurred during the last half of the fiscal year 1. Because of a change in a state law, the City of Macon has been informed that it will receive $80,000 less in state revenue than was budgeted. 2. Purchase orders and other commitment documents in the amount of $1,032,000 were issued during the six months ended April 30, 2008 3. Property taxes of S6,500 and interest and penalties receivable of S1,340, which had been written off in prior years, were collected. Additional inter- est of S250 that had accrued since the write-off was collected at the same time

Explanation / Answer

Journal entries :-

1. Budgeted Revenue Account -Dr. 80,000

To Budgeted Deficit Liability 80,000

(Being Amount to be received in a deficit as the change in law)

2. No Journal Entries is to be made for such transcation.

3. Bank Account - Dr. 8,090

To Interest & Penalties 1,340

To Property taxes 6,500

To Additional accrued interest 250

(Being Interest & penlaties and property taxes earlier written off has been collected)

4. Personnel Cost Account -Dr. 338,420

To Bank Account 281,510

To Withholding Federal income tax 42,510

To State withholding tax 14,400

(Being Amount paid to Personnels in Cash by withholding taxes liability)

5. FICA tax Expenses Account -Dr. 25,890

To FICA Withholding tax 25,890

(Being Employer's FICA tax liability has been withhold in books)

6. Accured Revenue Account -Dr. 25,000

To Revenue Account 25,000

(Being Amount receivable on taxes on unassessed properties)

7. Bank (Funds) Account -Dr. 1,571,300

To Current Taxes Source 927,000

To Deliquent Taxes Sources 43,270

To Interest & penalty Sources 7,330

To Other revenue soruces 593,700

(Being Amount received from different sources)

14. Other Expenses Account -Dr. 1,202,600

To Bank (Funds) Account 1,202,600

(Being Payments made on vouchers during second half)

NOTE : -

In above all BANK Account shown in entries are nothing but Funds available with Macon's General Fund for daily receipts and payments.