Chapter 16, Problem 38P

Prepare journal entries for the City of Pudding’s governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements.

1. a. A new truck for the sanitation department was ordered at a cost of $94,000.
2. b. The city print shop did $1,200 worth of work for the school system (but has not yet been paid).
3. c. An $11 million bond was issued to build a new road.
4. d. Cash of $140,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.
5. e. The truck ordered in (a) is received at an actual cost of $96,000. Payment is not made at this time.
6. f. Cash of $32,000 is transferred from the general fund to the capital projects fund.
7. g. A state grant of $30,000 is received that must be spent to promote recycling.
8. h. The first $5,000 of the state grant received in (g) is appropriately expended.