Question

1. Prepare journal entries to record the following events and transactions for the year 2018.   

              a. The Township adopted a budget calling for appropriations of $420,000. The estimated revenues (all property taxes) were $400,000.

              b. The Township sent property tax bills amounting to $280,000 to property owners.

              c. Property owners paid $250,000 of property taxes to the Township.

              d. A purchase order of $40,000 was sent to a vendor of supplies.

              e. The supplies ordered in transaction d. were received in good order and the accompanying invoice of $38,000 was approved.

Answer 1

Transaction	Account Titles and Explanation	Debit	Credit
a	Estimated revenues - property taxes	$400,000
	Budgetary fund balance	$20,000
	Appropriations		$420,000
b	Property taxes receivable	$280,000
	Revenues - property taxes		$280,000
c	Cash	$250,000
	Property taxes receivable		$250,000
d	Encumbrances	$40,000
	Budgetary fund balance reserved for encumbrances		$40,000
e	Budgetary fund balance reserved for encumbrances	$40,000
	Encumbrances		$40,000
	Expenditures - supplies	$38,000
	Vouchers payable		$38,000