Chapter 6, Problem 3E

(Various Entries) Record the following transactions in General Ledger accounts of the General Fund of Fergieville.

1. 1. Incurred salaries of $300,000, $280,000 of which was paid.
2. 2. A long-term note ($400,000 face value) matured. The interest of $40,000 was paid but the principal was not.
3. 3. Purchased computers with a cost of $45,000; $22,000 was paid; the balance is due and is expected to be paid at the end of the first quarter of the next fiscal year.
4. 4. Purchased materials for cash, $19,000. Assume use of the purchases method of accounting.
5. 5. Received bill from the water and sewer department for services, $7,500; $4,000 was paid.
6. 6. Ordered, but have not yet received, materials costing $70,000.
7. 7. Paid required annual contribution to pension plan, $250,000.
8. 8. Determined that the Capital Projects Fund should be reimbursed $3,000 for wages that should have been charged to General Fund departments but were paid from the Capital Projects Fund.
9. 9. Repaid a 6-month note (face value, $50,000) and interest on the note ($2,500).
10. 10. Paid $75,000 to the Golf Course Enterprise Fund to cover its operating deficit for the year.