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Homework answers / question archive / Assume that the City of Pasco maintains its books and records in a manner that facilities preparation of the fund financial statements

Assume that the City of Pasco maintains its books and records in a manner that facilities preparation of the fund financial statements

Business

Assume that the City of Pasco maintains its books and records in a manner that facilities preparation of the fund financial statements. The Cit engaged in the following transactions related to its general fund during the current fiscal year. The City formally integrates the budget into the accounting records. The City does not maintain an inventory of supplies. All amounts are in thousands.

Required: Prepare, in summary form, the appropriate journal entries.

(a) The City Council approved a budget with revenues estimated to be $600 and expenditures of $590.
(b) The City ordered supplies at an estimated cost of $25 and equipment at an estimated cost of $20.
(c) The City incurred salaries and other operating expenses during the year totaling $550. The City paid for these items in cash.
(d) The City received the supplies at an actual cost of $23.
(e) The City collected revenues of $595.

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Here we have to make journal entries for each of our transactions and also ensure that at the end of year we can reflect true situation of City Government Finances

All the instructions above will lead to following entries will be made at the end of the year only real accounts will remain.

The first entry will be as following:
a) General Fund Dr. $600
To Estimated Revenues - $600

Estimated Expenditures A/C Dr. $590
To General Fund - $590

Task:
a) General Fund Dr. $600
To Estimated Revenues $600

Estimated Expenditures A/C Dr. $590
To General Fund $590

b) Estimated Supplies A/C Dr. $25
Fund for Equipment A/C Dr. $20
To Estimated Expenditure A/C $45

c) Operating Expenses A/C Dr. $550
To Estimated Expenditure A/C $ 550

Journal Entry to take into account real time situation at the end of year
Estimated Expenditure Dr. A/C $5
To General Fund A/C $5

d) Supplies A/C Dr. $23
To Estimated Supplies A/C $23

Journal Entry to take into account real time situation
General Fund Dr. $2
To Estimated Supplies A/C $2

e)Estimated Revenues $595
To Revenues A/C Dr $595

Journal Entry to take into account real time situation at the end of year
Estimated Revenues A/C Dr. $5
To General Fund $5

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