Prepare Entries in General Journal Form to Record the Following

question 109

Essay

Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2017. Use modified accrual accounting.
a) The legal budget for the year provided for $5,000,000 of estimated revenues and $4,960,000 appropriations.
b) Assume there are $ 210,000 of purchase orders outstanding at the end of last year and that these will be honored in the current year. Prepare the entries to re-establish the encumbrance.
c) Property taxes were levied in the amount of $3,300,000. It is estimated that 2 percent of the taxes will never be collected.
d) Purchase orders were issued for equipment and supplies in the amount of $4,000,000.
e) Supplies, relating to all of the prior year purchase orders $210,000, were received along with invoices amounting to $207,000.
f) Collections of current property taxes amounted to $2,950,000. The uncollected taxes recorded as delinquent.
g) It was estimated that $210,000 in property taxes would be collected in the first 60 days of 2017 and that $160,000 would be collected in later periods.

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Definitions:

Horsetails

A group of vascular plants in the genus Equisetum, known for their jointed, hollow stems and reproduction through spores, not seeds.

Terrestrial Life

Organisms that live and thrive on land, as opposed to in water or air.

Land Plants

A large group of terrestrial plants, including bryophytes, ferns, and seed plants, that are key contributors to terrestrial ecosystems and the global oxygen cycle.

Megafossils

Large fossilized remains or impressions of plants or animals visible to the naked eye, used in the study of paleontology.