This is for my Governmental Accounting class, the text book it is out of is Chapter 4, Essentials of Accouting for governmental and not-for-profit Organizations. 12th edition. I have having trouble figuring out the journal entries. It is all one question.
The accounts used in this question are...
Cash with beginning balance of $21,000, Investments with a beginning balance of $59,000, Due from state government with a beginning balance of 109,000, Accounts Payable 9,000, Total Fund Beginning Balance 180,000, Revenues INTERGOVERNMENTAL, Revenues Investment Interest, Expenditures- Street and highway maintance
Budgatry accouts: Estimated Revenue, Apporpriations, Budgetary Fund Balance, Budgetary fund balance-reserve for encombrance, Encumbrances.
If you can please use these accounts to help me answer this question...
Question: Record journal entries for the following transactions for FY 2015 and post to the general ledger. As there are relatively few revenues and expenditures, the use of control accounts is not necessary. (Make entries directly to individual revenue and expenditure accounts).
(1) The state government notified the City that $1,072,000 will be available for street and highway maintenance during 2015 (i.e. the City has met eligibility requirements). The funds are not considered reimbursement-type as defined by GASB standards.
(2) Cash in the total amount of $985,000 was received from the state government.
(3) Contracts, all eligible for payment from the Street and Highway Fund, were signed in the amount of $1,062,000.
(4) Contractual services (see transaction 3) were received; the related contracts amounted to $1,043,000. Invoices amounting to $1,030,500 for these items were approved for payment. The goods and services all were for street and highway maintenance.
(5) Investment revenue of $5,120 was earned and received.
(6) Accounts payable were paid in the amount of $923,000.
(7) All required legal steps were accomplished to increase appropriations in the amount of $4,500.