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Journal Entries > Journal Entries > Flashcards

Journal Entries Flashcards

1
Q

Add 3% of sales to the allowance account ($2,500,000 x 3% = $75,000)

A

Debit - Uncollectible Accounts Expense 75,000

Credit - Allowance for Uncollectible Accounts 75,000

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2
Q

Write-off an uncollectible account

A

Debit - Allowance for uncollectible accounts 1,000

Credit - Accounts Receivable 1,000

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3
Q

Record declaration of cash dividends

A

Debit - Dividends 1,500,000

Credit - Dividends Payable 1,500,000

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4
Q

Record payment of cash dividends

A

Debit - Dividends Payable 1,500,000

Credit - Cash 1,500,000

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5
Q

Record issuance of 100, 8%, 5-year bonds at discount

A

Debit - Cash 92,278
Debit - Discount on Bonds Payable 7,722
Credit - Bonds Payable

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6
Q

Record interest payment (this entry occurs on every interest payment date at 6 month intervals) and amortization of discount

A

Debit - Interest Expense 4,772
Credit - Discount on Bonds Payable 772
Credit - Bonds Payable 4,000

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7
Q

Record payment of face value at maturity

A

Debit - Bonds Payable 100,000

Credit - Cash 100,000

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8
Q

Record issuance of 100, 12% bonds

A

Debit - Cash 102,000
Credit - Bonds Payable 100,000
Credit - Interest Payable 2,000

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9
Q

Record interest payment (includes return of accrued interest payable from original issue on June 1)

A

Debit - Interest Expense 4,000
Debit - Interest Payable 2,000
Credit - Cash 6,000

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10
Q

Record issuance of 100, 8%, 5-year bonds at par (100 x $1,000 each)

A

Debit - Cash 100,000

Credit - Bonds Payable 100,000

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11
Q

Record interest payment (this entry occurs on every interest payment date at 6 month intervals - $100,000 x 8% x 6/12)

A

Debit - Interest Expense 4,000

Credit - Cash 4,000

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12
Q

Record payment of face value at maturity

A

Debit - Bonds Payable 100,000

Credit - Cash 100,000

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13
Q

Purchased land by giving $5,000 cash, and promising to pay the remainder in 90 days

A

Debit - Land 15,000
Credit - Cash 5,000
Credit - Notes Payable 10,000

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14
Q

Record issuance of 100, 8%, 5 year bonds at premium

A

Debit - Cash 108,530
Credit - Premium on bonds payable 8,530
Credit - Bonds Payable 100,000

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15
Q

Record interest payment and amortization of premium

A

Debit - Interest Expense 3,147
Debit - Premium on bonds payable 853
Credit - Cash 4,000

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16
Q

Record payment of face value at maturity

A

Debit - Bonds Payable 100,000

Credit - Cash 100,000

17
Q

City Council adopts an annual budget for the general fund with estimated revenues of $1,700,000, appropriations of $1,500,000, and approved transfers of $120,000.

A 
General Fund
Dr. Estimates Revenues $1,700,000
Cr. Appropriations $1,500,000
Cr. Estimated Other Financing Uses $120,000
Cr. Budgetary Fund Balance $80,000

Governmental Activities - budget entries are not reported

18
Q

Property taxes of $1,300,000 are levied. City expects to collect all but 3% of taxes.

A

General Fund
Dr. Property Taxes Receivable $1,300,000
Cr. Allowance for Uncollectible Tax $39,000
Cr. Revenues $1,261,000

Governmental Activities
Dr. Property Taxes Receivable $1,300,000
Cr. Allowance for Uncollectible Tax $39,000
Cr. Revenues $1,261,000

19
Q

Two new police cars are ordered for $150,000

A

General Fund
Dr. Encumbrances $150,000
Cr. Fund Balance Reserved - Encumbrances $150,000

Governmental Activities - purchase orders are not reported

20
Q

A transfer of $50,000 is made from the general fund to the debt service fund.

A

General Fund
Dr. Other Financing Uses - Transfer Out $50,000
Cr. Cash $50,000

Debt Service Fund
Dr. Cash $50,000
Cr. Other Financing Sources - Transfer In $50,000

Governmental Activities - no journal entry needed

21
Q

A bond payable of $40,000 is paid along with $10,000 in interest.

A

Debt Service Fund
Dr. Expenditures - Principal $40,000
Dr. Expenditures - Interest $10,000
Cr. Cash $50,000

Governmental Activities
Dr. Bonds Payable $40,000
Dr. Interest Expense $10,000
Cr. Cash $50,000

22
Q

A $2,000,000 bond is issued at face to acquire a building to convert to a school.

A

Capital Projects Fund
Dr. Cash $2,000,000
Cr. Other Financing Sources - Bond Proceeds $2,000,000

Governmental Activities
Dr. Cash $2,000,000
Cr. Bonds Payable $2,000,000

23
Q

The two police cars are received with an invoice for $152,000

A

General Fund
Dr. Fund Balance Reserved - Encumbrances $150,000
Cr. Encumbrances $150,000

Dr. Expenditures $152,000
Cr. Vouchers Payable $152,000

Governmental Activities
Dr. Vehicles $152,000
Cr. Vouchers Payable $152,000

24
Q

The building for the school is acquired for $2,000,000 cash.

A

Capital Projects Fund
Dr. Expenditure $2,000,000
Cr. Cash $2,000,000

Governmental Activities
Dr. Building $2,000,000
Cr. Cash $2,000,000

25
Q

Depreciation on the new police cars is computed as $30,000.

A

General Fund - no depreciation is recorded

Governmental Activities
Dr. Depreciation Expense $30,000
Cr. Accumulated Depreciation $30,000

26
Q

The city borrowed $100,000 on a 90-day note.

A

General Fund
Dr. Cash $100,000
Cr. Notes Payable $100,000

Governmental Activities
Dr. Cash $100,000
Cr. Notes Payable $100,000

27
Q

A special assessment project is begun. The city sells $80,000 in bonds at face to finance the project. If the debt is not paid by the assessments collected, the city has pledged to guarantee the debt.

A

Capital Projects Fund
Dr. Cash $80,000
Cr. Other Financing Sources-Special Assessments $80,000

Governmental Activities
Dr. Cash $80,000
Cr. Bonds Payable $80,000

28
Q

A contractor completes the assessment project and is paid $80,000.

A

Capital Projects Fund
Dr. Expenditures $80,000
Cr. Cash $80,000

Governmental Activities
Dr. Infrastructure Assets $80,000
Cr. Cash $80,000

29
Q

Citizens are assessed $85,000 for the project.

A

Debt Service Fund
Dr. Taxes Receivable - Assessment $85,000
Cr. Revenues $85,000

Governmental Activities
Dr. Taxes Receivable - Assessment $85,000
Cr. Revenues $85,000

30
Q

The assessments of $85,000 are collected in full. The debt, plus $5,000 in interest is repaid.

A

Debt Service Fund
Dr. Cash $85,000
Dr. Taxes Receivable - Assessment $85,000

Dr. Expenditures - Principle $80,000
Dr. Expenditures - Interest $5,000
Cr. Cash $85,000

31
Q

The city receives a $10,000 grant for repairing a park.

A

Special Revenue Funds
Dr. Cash $10,000
Cr. Deferred Revenue $10,000

Governmental Activities
Dr. Cash $10,000
Cr. Deferred Revenue $10,000

32
Q

The city spends $4,000 on park repairs.

A

Special Revenue Funds
Dr. Expenditures $4,000
Cr. Cash $4,000

Dr. Deferred Revenues $4,000
Cr. Revenues - Grants $4,000

Governmental Activities
Dr. Park Expense $4,000
Cr. Cash $4,000

Dr. Deferred Revenues $4,000
Cr. Revenues - Grants $4,000

Journal Entries (1 decks)

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