Answer:
Olivia Village
Journal Entries:
July 1, 20X2 to June 30, 20X3:
1. No journal entry required.
2. Debit Property Taxes Receivable $390,000
Credit Property Tax Revenue $390,000
To record the levying of property taxes
Debit Uncollectible taxes expense $7,800
Credit Uncollectible tax expense $7,800
To record the estimated uncollectible of 2%.
3. Debit Marketable Securities $50,000
Credit Restricted Trust Fund Donations $50,000
To record the donation of marketable securities.
Debit Restricted Trust Fund $5,500
Credit Marketable Securities Revenue $5,500
To record the revenue earned on marketable securities.
4. Debit Internal Service Fund $5,000
Credit General Fund $5,000
To record the transfer of funds.
5. Debit Special Assessment Fund $72,000
Credit Special Assessment Bonds $72,000
To record the issue of bonds for special assessment project.
Debit Special Assessment Receivable $24,000
Credit Special Assessment Levy $24,000
To record the special assessment levied
6. Special Assessment Fund $27,000
Credit Special Assessment Receivable $24,000
Credit General Fund $3,000
To record the collection of the first year's special assessment and transfer from General Fund.
7. Debit Capital Projects Fund $75,000
Credit Contractor Payable $75,000
To record the letting of the contract for lighting.
June 30, 20X3:
Debit Contractor Payable $75,000
Credit Capital Projects Fund $75,000
To record the payment of the contractor for the project.
8. Debit Supplies $1,900
Credit Internal Service Fund $1,900
To record the purchase of various supplies.
9. Debit General Fund $393,000
Credit Property taxes Receivable $386,000
Credit Licenses and permit fees $7,000
To record cash collections for general fund
Debit Allowance for Uncollectible taxes $3,800
Credit Uncollectible Expenses $3,800
To adjust the allowance for uncollectible taxes to $4,000 balance.
10. Debit General Fund $500,000
Credit Bonds Payable $500,000
To record the issue of 6%, 20-year bonds payable.
11. Debit Fire Truck $15,000
Credit General Fund $15,000
To record the payment for the purchase of a fire truck.
Explanation:
Olivia Village can use the general journal to initially record transactions that occur during the year. The journal shows the accounts to be debited and the accounts to be credited.
