Prepare entries to record the following events and transactions for Tropical Township for the year 2018. The Township adopted a budget calling for appropriations of $360,000.  The estimated revenues (all property taxes) were $350,000. The Township sent property tax bills amounting to $350,000 to property owners. Property owners paid $339,000 of property taxes to the Township. A purchase order of $25,000 was sent to a vendor of supplies. The supplies ordered in transaction d. were received in good order and the accompanying invoice of $24,000 was approved.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare entries to record the following events and transactions for Tropical Township for the year 2018.

  1. The Township adopted a budget calling for appropriations of $360,000.  The estimated revenues (all property taxes) were $350,000.
  2. The Township sent property tax bills amounting to $350,000 to property owners.
  3. Property owners paid $339,000 of property taxes to the Township.
  4. A purchase order of $25,000 was sent to a vendor of supplies.
  5. The supplies ordered in transaction d. were received in good order and the accompanying invoice of $24,000 was approved.

Below are the names to use for the entries:

Appropriations

Budgetary fund balance

Cash

Property tax receivable

Revenue – property tax

Estimated revenue – property tax

Encumbrances

Expenditures – supplies

Budgetary fund balance reserved for encumbrances (BFBRFE)

Vouchers payable

 

 

 

Transaction

(letter)

Account

Debit

Credit

 

   

 

 

   

 

 

 

 

 

 

   

 

 

 

 

 
   

 

 

 

     

 

   

 

 

 

 

 

 

   

 

 

 

 

 

 

   

 

 

 

 

 
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