The following are several transactions that relate to Bultena Township for the fiscal year 2019 (assume a voucher system is used). Prepare all the journal entries necessary to record these transactions in the appropriate governmental-type fund(s), and identify the fund(s) used. Provide a description for each transaction in the orange box.

1. The General Fund operating budget was approved. It included estimated revenues of $1,500,000, estimated other financing sources of $300,000, appropriations of $1,150,000, financing uses of $600,000.

2. The Police Department paid its salaries of $50,000.

3. The General Fund made a transfer to the Debt Service Fund of $100,000.

4. Office furniture previously ordered for $45,000 was received, and the bill was entered into the voucher system. Old furniture that cost $23,000 was sold for $500; the proceeds could be used in any manner by the city.

5. General obligation long-term debt principal matured (due), and the final interest payment became due. These amounts were $75,000 and $7,500, respectively were paid. Assume a Debt Service Fund and a fiscal agent are used.

6. The township decides to construct a new library, which it estimates will cost $3.5 million. The City will finance the library with a state construction grant; general obligation bond issuance; and a transfer from the General Fund. Prepare a journal entry to record the transfer from the General Fund of 500,000.

7. Bonds were issued for the new Library. The face value of the bonds are 3 million and they sold for 3,017,500. The bond documents state a debt service fund is required and any premium should be transferred to this fund.

8. Bids for the construction of the library project were received in the amount of $2,987,000

9. The contractor on the library project sent the first partial billing for $966,000. the contract states a 10% retainage is required.

Fall 2019 Fund Abbreviations GF General Fund CPF Capital Project Fund DSF Debt Service Fund EF Enterprise fund The General Fu

Journal Entry

Explanation:

1. Estimated revenues Dr, $1,500,000  

Estimated other financing sources Dr, $300,000  

        To Appropriations $1,150,000

         To Financing uses $600,000

         To Budgetary fund balance $50,000

(Being general fund operating budget is recorded)

2. Expenditures-salaries Dr, $50,000  

       To vouchers payable 50,000

(Being salaries paid in the police department is recorded)

3. General fund

Transfer out to debt service fundDr, $100,000  

        To cash $100,000

Debt service fund  

Cash Dr, $100,000

        To transfer in from general fund $100,000

(Being transfer from the general fund to the debt service fund is recorded)

4. Budgetary fund balance Dr, $45,000

       To Encumbrances $45,000

Expenditures-capital outlay Dr, 45,000

        To vouchers payable $45,000

Cash Dr, $500

       To other financing source-sale of assets $500

(Being purchase and sale of office furniture is recorded)

5. General fund  

Transfer out to debt service fundDr, 150,000  

      To cash 150,000

Debt service fund  

Cash Dr, $150,000

       To transfer in from general fund $150,000

Interest expenditures Dr, $75,000

Bond principal expenditures Dr, $75,000  

       To cash $150,000

(Being payment of long term obligation is recorded)

6. Capital project fund  

Cash Dr, $500,000  

      To transfer in from general fund 500,000

General fund  

Transfer out to capital project fund Dr, $500,000  

     To cash 500,000

(Being  transfer from general fund to capital project fund is recorded)

7. Cash Dr, $3,017,500

other financing source- bond premium $17,500

         To other financing source- bond issue $3,000,000

General fund

Transfer out to debt service fund Dr, $17,500  

            To cash $17,500

Debt service fund  

Cash Dr, 17,500

          To transfer in from general fund $17,500

(Being bond issue and a bond premium transfer to debt service fund is recorded)

8. Cash Dr, $2,987,000  

        To property tax receivable $2,987,000

(Being receive of bid is recorded)

9. Expenditures-salaries Dr, $869,400

         Retainage payable Dr, $96,600

             To vouchers payable 966,000

(Being contractor received a bill is recorded)

Note:- Kindly ignore the last four line of question as it is irrelevant.

answer; i believe the correct answer is (75 years);