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Question: Following are descriptions of transactions and


Following are descriptions of transactions and other financial events for the City of Tetris for the year ending December 2020. Not all transactions have been included here. Only the general fund formally records a budget. No encumbrances were carried over from 2019.



Following are descriptions of transactions and other financial events for the City -1

The following questions are independent although each is based on the preceding information. Assume that the government is preparing information for its fund financial statements.
a. What is the balance in the Budgetary Fund Balance account for the budget for the year? Is it a debit or credit?
b. Assume that 60 percent of the school supplies are used during the year so that 40 percent remain. If the consumption method is being applied, how is this recorded?
c. The sanitation truck that was ordered was not received before the end of the year. The commitment will be honored in the subsequent year when the truck arrives. What reporting is made at the end of 2020?
d. Assume that new ambulance was received on December 31, 2020. Provide all necessary journal entries on that date.
e. Prepare all journal entries that should have been made when the $33,000 transfer was made for the eventual payment of a long-term debt.
f. What amount of revenue should the city recognize for the period? Explain the composition of this total.
g. What are the total expenditures? Explain the makeup of this total. Include response to (b) here.
h. What journal entry or entries did the city prepare for the issuance of the bonds?

2.99

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