Problem - General Fund Journal Entries
Several independent financial activities of a governmental unit are given below.
1. Revenue from the sale of licenses and permits for the first two months totaled $15,000.
2. Land that had been donated previously was sold for $100,000.
3. An order was placed for the purchase of a new fire engine at a price of $130,000.
4. Bonds with a face value of $500,000 were issued at par value to finance a new park.
5. A $250,000 grant was received from the federal government to help improve the local schools.
6. The new fire engine was received and accepted. The approved price, however, was $140,000 rather than $130,000.
Required: Prepare the journal entries needed to account for each transaction in the General Fund.