The Following Transactions Occurred for the City of Fontaine's General

question 75

Essay

The following transactions occurred for the City of Fontaine's General Fund.
1.The budget prepared for the fiscal year included Total estimated revenues of $2,774,000 and appropriations of $2,693,000.
2.Encumbrances issued against the appropriations during the year were $931,000.
3.The current year's tax levy of $2,005,000 was recorded; uncollectibles were estimated as $65,000.
4.Collections of delinquent taxes from prior years' levies totaled $132,000; collections of the current year's levy totaled $1,459,000.
5.Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in Transaction (2)of this problem. The estimated liability was $851,200. Actual costs were $850,500.
6.Revenue other than taxes collected during the year consisted of licenses and permits,$373,000; intergovernmental revenue,$400,000; and $66,000 of miscellaneous revenues.
7.Payments on Vouchers Payable totaled $1,505,000.
Prepare journal entries in the General Fund general journal to record the transactions. (Subsidiary detail may be omitted.)

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Definitions:

Direct Costs of Disposal

The expenses directly linked to the process of disposing of an asset, including sales fees and legal costs.

Decreasing Costs

A situation where the expenses of producing a good or service fall over time, typically due to efficiency improvements or economies of scale.

LIFO Method

An inventory valuation method called "Last In, First Out," where the cost of the most recently purchased items is the first to be expensed as cost of goods sold.

Net Income

Refers to the total earnings or profit of a company after subtracting all expenses and costs from its total revenue.