Journal Entries Flashcards
Add 3% of sales to the allowance account ($2,500,000 x 3% = $75,000)
Debit - Uncollectible Accounts Expense 75,000
Credit - Allowance for Uncollectible Accounts 75,000
Write-off an uncollectible account
Debit - Allowance for uncollectible accounts 1,000
Credit - Accounts Receivable 1,000
Record declaration of cash dividends
Debit - Dividends 1,500,000
Credit - Dividends Payable 1,500,000
Record payment of cash dividends
Debit - Dividends Payable 1,500,000
Credit - Cash 1,500,000
Record issuance of 100, 8%, 5-year bonds at discount
Debit - Cash 92,278
Debit - Discount on Bonds Payable 7,722
Credit - Bonds Payable
Record interest payment (this entry occurs on every interest payment date at 6 month intervals) and amortization of discount
Debit - Interest Expense 4,772
Credit - Discount on Bonds Payable 772
Credit - Bonds Payable 4,000
Record payment of face value at maturity
Debit - Bonds Payable 100,000
Credit - Cash 100,000
Record issuance of 100, 12% bonds
Debit - Cash 102,000
Credit - Bonds Payable 100,000
Credit - Interest Payable 2,000
Record interest payment (includes return of accrued interest payable from original issue on June 1)
Debit - Interest Expense 4,000
Debit - Interest Payable 2,000
Credit - Cash 6,000
Record issuance of 100, 8%, 5-year bonds at par (100 x $1,000 each)
Debit - Cash 100,000
Credit - Bonds Payable 100,000
Record interest payment (this entry occurs on every interest payment date at 6 month intervals - $100,000 x 8% x 6/12)
Debit - Interest Expense 4,000
Credit - Cash 4,000
Record payment of face value at maturity
Debit - Bonds Payable 100,000
Credit - Cash 100,000
Purchased land by giving $5,000 cash, and promising to pay the remainder in 90 days
Debit - Land 15,000
Credit - Cash 5,000
Credit - Notes Payable 10,000
Record issuance of 100, 8%, 5 year bonds at premium
Debit - Cash 108,530
Credit - Premium on bonds payable 8,530
Credit - Bonds Payable 100,000
Record interest payment and amortization of premium
Debit - Interest Expense 3,147
Debit - Premium on bonds payable 853
Credit - Cash 4,000
Record payment of face value at maturity
Debit - Bonds Payable 100,000
Credit - Cash 100,000
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.
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
Property taxes of $1,300,000 are levied. City expects to collect all but 3% of taxes.
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
Two new police cars are ordered for $150,000
General Fund
Dr. Encumbrances $150,000
Cr. Fund Balance Reserved - Encumbrances $150,000
Governmental Activities - purchase orders are not reported
A transfer of $50,000 is made from the general fund to the debt service fund.
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
A bond payable of $40,000 is paid along with $10,000 in interest.
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
A $2,000,000 bond is issued at face to acquire a building to convert to a school.
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
The two police cars are received with an invoice for $152,000
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
The building for the school is acquired for $2,000,000 cash.
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
Depreciation on the new police cars is computed as $30,000.
General Fund - no depreciation is recorded
Governmental Activities
Dr. Depreciation Expense $30,000
Cr. Accumulated Depreciation $30,000
The city borrowed $100,000 on a 90-day note.
General Fund
Dr. Cash $100,000
Cr. Notes Payable $100,000
Governmental Activities
Dr. Cash $100,000
Cr. Notes Payable $100,000
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.
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
A contractor completes the assessment project and is paid $80,000.
Capital Projects Fund
Dr. Expenditures $80,000
Cr. Cash $80,000
Governmental Activities
Dr. Infrastructure Assets $80,000
Cr. Cash $80,000
Citizens are assessed $85,000 for the project.
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
The assessments of $85,000 are collected in full. The debt, plus $5,000 in interest is repaid.
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
The city receives a $10,000 grant for repairing a park.
Special Revenue Funds
Dr. Cash $10,000
Cr. Deferred Revenue $10,000
Governmental Activities
Dr. Cash $10,000
Cr. Deferred Revenue $10,000
The city spends $4,000 on park repairs.
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
