Question - During 2008, the city of Lenexa was involved in the following:
a) A budget consisting of estimated revenues of $ 1,500,000 and appropriations for expenditure of $1,550,000 was approved by the city council.
b) Statements of property tax assessments totaling $1,100,000 were mailed to property owners. Experience indicates that 2% of assessed taxes will be uncollectable.
c) Equipment costing $85,000 was purchased, and old equipment was sold for $15,000 at the end of its estimated useful life.
d) The city manager signed a contract to purchase a machine costing $25,000.
e) The city received a statement from the state indicating that the city's portion of the state sales tax is $50,000.
f) The machine ordered in (d) above is delivered and accepted. The invoice in the amount of $26,000 was approved for payment.
Required - Prepare the journal entries needed to account for the preceding transactions.