Prepare journal entries to record the following events using the general fund and the general fixed assets account group: a. The general fund vouchered the purchase of trucks for $80,000. The purchase had been encumbered earlier in the year at $75,000. b. Several years ago, equipment costing $15,000 was acquired with general fund revenues. It was sold for $6,000, with proceeds belonging to the general fund. c. Early in the year, a citizen donated to the city land appraised at $100,000. She submitted plans for a new library and agreed to cover the total cost of construction, paying the company directly as work proceeded. At year-end, the building was two-thirds finished, with costs to date of $300,000. The expenditures are recorded in a capital projects fund. d. A snow plow was purchased with general fund cash for $92,000, which represented a cost of $110,000 less trade-in of $18,000 for an old snow plow originally purchased for $66,000 from special revenue funds. As an emergency purchase, the acquisition of the new snow plow had not been encumbered.
Prepare
a. The general fund vouchered the purchase of trucks for $80,000. The purchase had been encumbered earlier in the year at $75,000.
b. Several years ago, equipment costing $15,000 was acquired with general fund revenues. It was sold for $6,000, with proceeds belonging to the general fund.
c. Early in the year, a citizen donated to the city land appraised at $100,000. She submitted plans for a new library and agreed to cover the total cost of construction, paying the company directly as work proceeded. At year-end, the building was two-thirds finished, with costs to date of $300,000. The expenditures are recorded in a capital projects fund.
d. A snow plow was purchased with general fund cash for $92,000, which represented a cost of $110,000 less trade-in of $18,000 for an old snow plow originally purchased for $66,000 from special revenue funds. As an emergency purchase, the acquisition of the new snow plow had not been encumbered.
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