For numbers 1 – 15, journalize the transaction using the “Review Journals” spreadsheet….

For
numbers 1 – 15, journalize the transaction using the “Review Journals”
spreadsheet. On the same spreadsheet,
tell if each transaction will affect any of the following statements: the
Statement of Net Assets, the Statement of Activities, the Fund Balance Sheet,
Statement of Revenues, and Expenditures & Changes in Fund Balance.

1. Record the approved budget for the general fund for fiscal year 2011
(approved on February 28) using the following:
Revenues –
Taxes: (Only 95% of taxes is deemed collectible)
Real Property $1,500,000
Sales $700,000
Interest and
Penalties on Taxes $6,000
Intergovernmental
Revenue $280,000
Charges for
Services $192,000
Total Estimated Revenues $2,678,000

Appropriations –
General
Government $ 1,100,000
Public Safety:
Police $550,000
Fire $550,000
Building Safety $175,000
Public Works $800,000
Health and
Welfare $650,000
Parks and
Recreation $500,000
Total Appropriations $3,225,000

Other Financial Uses –
$50,000

2. 3/1/2011 – Enter into contract to purchase salt for snow clearance
for Public Works. Purchase order for
$800,000

3. 4/25/2011 – Purchase three police cars at $25,000 each

4. 5/16/2011 – Received $550,000 of salt and invoice

5. 6/1/2011 – Received approval for bond issuance of $2,500,000 to
purchase land and build a new playground.
General taxes will be used to retire the debt. Bonds will not be issued until September 1
(annual interest rate on bonds is 5%).

6. 6/30-2011 – Paid for $550,000 for salt

7. 7/15/2011 – Received remaining salt at $225,000

8. 7/30/200 – Paid $225,000 for salt.

9. 8/1/2011 – Received the following revenues:
Real Property $650,000
Sales $80,000
Interest and
Penalties on Taxes $1,000
Intergovernmental
Revenue $120,000 (80,000 from federal
grant and 40,000 from state grant)
Charges for
Services $80,000

10. 9/1/2011 – Received $2,400,000 on bond issue with a face value of
$2,500,000. Principal payment of
$250,000 is due 9/1 annually and Interest payments are due semiannually on 9/1
and 3/1 of every year. The proceeds were
used to purchase land for $100,000 and enter into a construction contract for
2,000,000.

11. 10/5/2011 – $50,000 is moved from General fund to an internal
service fund.

12. 10/31/2011 – Purchased building safety materials and supplies for
$175,000. Assume invoice and payment
occurred on date of purchase.

13. 11/1/2011 – Entered into lease to own agreement for equipment used
for Public Safety. The lease payments
are $5,000 annually for 10 years. The
first payment was due 11/1/2011. Assume
a 10% interest rate and the fair value amount of the property is 32,000.

14. 12/31/2011 – Perform closing entries for the following only:
Appropriations for Public Works (salt purchase), accrued interest on bonds, and
accrued interest on capital lease (if applicable). It was also determined that $6,000 of Sales
Tax is delinquent. Record journal entry
to reclassify asset

15. 1/1/2012 – Create the debt service fund (including budget) to make
principal and interest payments for the 2011 $2,500,000 bond issuance.