Record journal entries for th e following transactions for FY 2015 and post to t
ID: 2456265 • Letter: R
Question
Record journal entries for th e following transactions for FY 2015 and post to the general ledger. As there are relatively few revenues a nd expenditures, the use of control accounts is not necessary. (Make entries directly to individual revenue and expenditure accounts).
(1) The state government notified the City that $1,072,000 will be available for street and highway maintenance during 2015 (i.e. the City has met eligibility requirements). The funds are not considered reimbursement-type as defined by GASB standards.
(2) Cash in the total amount of $985,000 wa s received from the state government.
(3) Contracts, all eligible for payment from the Street and Highway Fund, were signed in the amount of $1,062,000.
(4) Contractual services (see transaction 3) were received; the related contracts amounted to $1,043,000. Invoices amounting to $1,030,500 for these items were approved for payment. The goods and services all were for street and highway maintenance.
(5) Investment revenue of $5,120 was earned and received.
(6) Accounts payable were paid in the amount of $923,000.
(7) All required legal steps were accomplis hed to increase appropriations in the amount of $4,500.
b. Prepare and post the necessary closing entries for the Street and Highway Fund.
c. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the Street and Highway Fund for the fiscal year ended December 31, 2015.
d. Prepare a Balance Sheet for the Street and Highway Fund as of December 31, 2015. Assume any unexpended net resources are classified as Restricted Fund Balance.
Accts work with are Cash, Accts Payable, Contracts Payable Retained Percentage, Due from State Gov't, Encumbrances, Budgetary Fund Bal Reserve for Encumbrances, Capital Expenditures, Other Fin Uses Transfer Out, Revenue Intergovermental, Other Fin Sources Bond Proceeds, Other Fin Sources Bond Premium. I have the journal entries completed, looking for assistance w/ remainder.
Explanation / Answer
a.
b.
1 No Entry 2 Account title and explanation Debit Credit Cash 985,000 To State and highway fund 985,000 (Being cash eceived from the government) 3 No entry 4 Contractual Serivice 1,043,000 To Accounts payable 1,043,000 (Being Service received and due) 5 Cash 5,120 To Return on Investment 5,120 (Being income on investment received) 6 Accounts payable 923,000 To cash 923,000 (Being Accounts payable have been paid) 7 Legal expenses 4,500 To Cash 4,500 (being legal expenses paid)Related Questions
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