Question 1

Prepare all general journal entries required in the General Fund of Lasanod County for each of the
following transactions. Also, use transaction analysis to show any effects on the GCA-GLTL accounts.

1. The county levied property taxes of $5,000,000. Two percent are expected to prove
uncollectible. The rest of the taxes are expected to be collected by year end or soon enough
thereafter to be considered available at year end.
Debit: Taxes Receivable $5,000,000
Credit: Revenues – Property Taxes $4,900,000
Credit: Allowance for Uncollectible Taxes $100,000 (2% of $5,000,000)
2. The county collected $4,300,000 of the taxes receivable before the due date and the balance of
taxes became delinquent.
Debit: Cash $4,300,000
Credit: Taxes Receivable $4,300,000
3. The county collected another $540,000 of the taxes receivable by the end of the fiscal year.
Debit: Cash $540,000
Credit: Taxes Receivable $540,000
4. The county paid salaries and wages of $3,500,000 to General Fund employees during the year.
Accrued salaries at the beginning of the year were $180,000, and accrued salaries at year end
were $200,000.
Debit: Expenditures – Salaries and Wages $3,520,000
Credit: Cash $3,500,000
Credit: Accrued Salaries Payable $20,000
5. $800,000 was loaned from the county General Fund (from resources available for general
purposes) to the Lasanod County Inland Port Authority Enterprise Fund. The loan is to be repaid
in three years.
Debit: Due from Other Funds $800,000
Credit: Cash $800,000
6. The county purchased materials and supplies for various General Fund departments. The actual
cost of $398,000 was vouchered.
Debit: Expenditures – Materials and Supplies $398,000
Credit: Vouchers Payable $398,000
7. The county purchased road maintenance equipment at an actual cost of $40,000, which was
vouchered.
Debit: Expenditures – Capital Outlay $40,000
Credit: Vouchers Payable $40,000
8. The county contributed $500,000 of General Fund money to a CPF to provide partial financing
for construction of its recently approved sports center. The balance of the cost will be financed
by grants and borrowings.
Debit: Other Financing Uses – Transfers Out $500,000
Credit: Cash $500,000
9. The county borrowed $100,000 for General Fund purposes on a six-month, 6% note. The note
was issued two months before year end. Prepare any required year-end adjustments as well as
recording the original transaction.
 Debit: Cash $100,000
Credit: Notes Payable $100,000
Debit: Expenditures – Interest $1,000 (2 months interest at 6% on $100,000)
Credit: Interest Payable $1,000

Question 2

Property tax revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,000,000

Licenses and permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000

Intergovernmental grants . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000

Short-term note proceeds . . . . . . . . . . . . . . . . . . . . . . . . 775,000

General capital asset sale proceeds (Equal to book value less 10%) . . . . . . . . . . . . . . . . . 523,000

Receipt of residual cash from terminated Debt Service Fund #1 . . . . . . . . . . . . . . . . 90,000

Amount paid to Debt Service Fund #2 to cover principal and interest payments . . . . . . . . . . 100,000

General government expenditures . . . . . . . . . . . . . . . . . 800,000

Education expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . 10,250,000

Public safety expenditures . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000

Highways and streets expenditures . . . . . . . . . . . . . . . . 2,460,000

Health and sanitation expenditures . . . . . . . . . . . . . . . . 920,000

Capital assets purchased . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000

Retirement of principal of long-term note . . . . . . . . . . 300,000

Interest payment on long-term note . . . . . . . . . . . . . . . . 30,000

Interest expenditures on short-term note . . . . . . . . . . . 68,000

Fund Balance, January 1, 20X9 . . . . . . . . . . . . . . . . . . . . 4,750,000

Required:

Prepare, in good form, the 20X9 GAAP-based Statement of Revenues, Expenditures, and Changes in
Fund Balance for the General Fund of Hicks Township, based on the above information

Question 3

1. Levied property taxes, $9,000,000 (with uncollectible taxes estimated at $50,000).

2. Taxes collected before the due date totaled $7,500,000 of current taxes and $320,000 of 2022
and other prior year taxes.
3. Purchased supplies on account for $110,000.
4. Purchased equipment costing $198,659, which was vouchered.
 5. Issued a nine-month, 10% note to SSC-Khaatumo Bank on September 30, 2023, to raise
$300,000 to provide for a temporary cash shortfall in the General Fund.
6. Loaned $90,000 from resources available for general purposes to the Self-Insurance Internal
Service Fund. Repayment is required in four years.
7. Paid salaries of $5,800,000 during 2023. Accrued salaries at the end of the year totaled
$100,000, while at the beginning of the year they were $75,000.
8. Contributed $82,000 of General Fund resources to help cover the cost of the new water
distribution lines installed by the county’s Water Department, which provides services for a fee
that is intended to recover the costs of providing the services.
9. Received $5,000 from the Economic Development Special Revenue Fund because General Fund
resources had been used to pay a bill of the Economic Development Fund earlier in the year.
General Fund expenditures were recorded when the bill was paid.
10. Paid $1,750 to the Central Printing Internal Service Fund for printing services used by the
general administration of the county.

Required

Prepare the general journal entries required for the above transactions of the Buhodle County General
Fund during 2023. Also, use transaction analysis to show any effects on the GCA-GLTL accounts.