Record the appropriate journal entries for Sturgis City for the following transactions. The city uses encumbrance accounting and maintains a provision for uncollectible accounts. Note: Each transaction may involve more than one fund. The appropriate fund must be identified to receive credit. The central motor pool billed the General Fund for $33,000 in services. The General Fund previously recorded an encumbrance for the same amount. The city owned landfill purchased two tractors for a total of $40,000. The related invoice was paid. The City entered into a contract with Maker’s Construction to build a civic center for $3 million. The General Fund paid the central motor pool invoice (item 1).The landfill issued $4 million in revenue bonds for renovations.The landfill recorded daily fee receipts of $14,000.Maker’s Construction issued a progress billing for $350,000. The contract provides for a 10% retained percentage. The landfill sold an old tractor for $5,000 cash. It originally cost $15,000. The Links previously recorded $13,000 in depreciation. The Maker’s Construction progress billing (item 7) was paid.The central motor pool paid employee salaries of $87,000.

Passing or recording a journal entry is the first step to be followed according to the process of…

Answered: Record the appropriate journal entries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Record the appropriate journal entries for Sturgis City for the following transactions. The city uses encumbrance accounting and maintains a provision for uncollectible accounts.

Note: Each transaction may involve more than one fund. The appropriate fund must be identified to receive credit.

The central motor pool billed the General Fund for $33,000 in services. The General Fund previously recorded an encumbrance for the same amount.

The city owned landfill purchased two tractors for a total of $40,000. The related invoice was paid.

The City entered into a contract with Maker’s Construction to build a civic center for $3 million.

The General Fund paid the central motor pool invoice (item 1).
The landfill issued $4 million in revenue bonds for renovations.
The landfill recorded daily fee receipts of $14,000.
Maker’s Construction issued a progress billing for $350,000. The contract provides for a 10% retained percentage.

The landfill sold an old tractor for $5,000 cash. It originally cost $15,000. The Links previously recorded $13,000 in depreciation.

The Maker’s Construction progress billing (item 7) was paid.
The central motor pool paid employee salaries of $87,000.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions