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2 August, 17:29

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. A new truck for the sanitation department was ordered at a cost of $114,250. The city print shop did $3,600 worth of work for the school system (but has not yet been paid). An $11 million bond was issued to build a new road. Cash of $159,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund. The truck ordered in (a) is received at an actual cost of $116,650. Payment is not made at this time. Cash of $37,100 is transferred from the general fund to the capital projects fund. A state grant of $30,000 is received that must be spent to promote recycling. The first $5,700 of the state grant received in (g) is appropriately expended.

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  1. 2 August, 19:24
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    Answer and Explanation;

    City of Pudding's governmental funds

    General JournalDebitCredit

    a. General Fund

    Dr Encumbrances Control $114,250

    Cr Fund Balance - Reserved for Encumbrances $114,250

    b. General Fund

    Dr Expenditures (or Supplies) $3,600

    Cr Due to Internal Service Fund $3,600

    c. Capital Projects Fund

    Dr Cash $11,000,000

    Cr Other Financing Sources - Bonds Proceeds $11,000,000

    d. General Fund

    Dr Other Financing Uses - Transfers Out - Swimming Pool $159,000

    Cr Cash $159,000

    e. General Fund

    Dr Fund Balance - Reserved for Encumbrances $114,250

    Cr Encumbrances Control $114,250

    Dr Expenditures $116,650

    Cr Vouchers Payable $116,650

    f. General Fund

    Dr Other Financing Uses - Transfers Out $37,100

    Cr Cash $37,100

    Dr Capital Projects FundCash $37,100

    Other Financing Sources - Transfers In $37,100

    g. Special Revenue

    Dr FundCash $30,000

    Cr Deferred Revenues $30,000

    h. Special Revenue Fund

    Dr Deferred Revenues $5,700

    Cr Revenues $5,700

    Dr Expenditures $5,700

    Cr Cash $5,700
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