Assume that the City of Pasco maintains its books and records in a manner that facilities preparation of the fund financial statements. The Cit engaged in the following transactions related to its general fund during the current fiscal year. The City formally integrates the budget into the accounting records. The City does not maintain an inventory of supplies. All amounts are in thousands.
Required: Prepare, in summary form, the appropriate journal entries.
(a) The City Council approved a budget with revenues estimated to be $600 and expenditures of $590.
(b) The City ordered supplies at an estimated cost of $25 and equipment at an estimated cost of $20.
(c) The City incurred salaries and other operating expenses during the year totaling $550. The City paid for these items in cash.
(d) The City received the supplies at an actual cost of $23.
(e) The City collected revenues of $595.
Here we have to make journal entries for each of our transactions and also ensure that at the end of year we can reflect true situation of City Government Finances
All the instructions above will lead to following entries will be made at the end of the year only real accounts will remain.
The first entry will be as following:
Just over 200 words show how to make journal entries for the City of Pasco.