Journal Entries – General Fund Sun City incurred the following transactions during the year. Prepare the journal entries to record each transaction in the General Fund and include an explanation for each entry. Skip a line between each journal entry.     The Sun City Council passed a resolution approving a general operating budget of $19,500,000 for the fiscal year. Total revenues are estimated to be $20,000,000. Property taxes of $14,000,000 were levied and bills were sent to residents. It is estimated that 2% of these taxes will be uncollectible. $1,500,000 was designated for transfer to the capital projects fund for partial funding of a new municipal building to be constructed. An order was placed with a vendor for the purchase of new textbooks for Sun’s public school system. The texts are expected to arrive later in the month at a cost of $100,000. The cash transfer was made to the capital projects fund for the municipal building construction. The textbooks arrived and a bill was received for $105,000.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Journal Entries – General Fund

Sun City incurred the following transactions during the year. Prepare the journal entries to record each transaction in the General Fund and include an explanation for each entry. Skip a line between each journal entry.    

  1. The Sun City Council passed a resolution approving a general operating budget of $19,500,000 for the fiscal year. Total revenues are estimated to be $20,000,000.

  2. Property taxes of $14,000,000 were levied and bills were sent to residents. It is estimated that 2% of these taxes will be uncollectible.

  3. $1,500,000 was designated for transfer to the capital projects fund for partial funding of a new municipal building to be constructed.

  4. An order was placed with a vendor for the purchase of new textbooks for Sun’s public school system. The texts are expected to arrive later in the month at a cost of $100,000.

  5. The cash transfer was made to the capital projects fund for the municipal building construction.

  6. The textbooks arrived and a bill was received for $105,000.

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