ACCT 410/GA#1/ Budget Adoption and Encumbrance Accounting Transactions

13 points Type in your name here: Instructions: Download this template from Blackboard. Type the journal entries for each transaction given below.Accounts credited MUST be indented from the left margin. No handwritten work will be accepted for a grade.1. Granite City has a fiscal year that begins on July 1, 2015 and ends on June 30, 2016. The following budgetbecame effective for the fiscal year: Taxes, $6,700,000 License and permits $300,000 Fines and Forfeits, $100,000 Intergovernmental Revenues, $500,000 Issuance of bonds for $2,200,000 Transfer to Other Funds for $350,000 Total Appropriations, $9,200,000. What is the General Fund budget adoption transaction that should be recorded (use control accounts)? (3 points) 2. On October 10, 2015, Granite City received notification that it would receive a $175,000 state grant to helpfund the purchase of a new fire truck. The city did not anticipate receiving the grant and as a result, the grantwas not included in the budget when adopted. However, the capital budget for the city did include ananticipated expenditure for the new fire truck for $350,000. Record the budget amendment transaction only.(.7 points) 3. On November 1, 2015, Granite City placed a purchase order for the new fire truck at a quoted a price of$350,000. (.7 points) 4. On December 15, the fire truck was delivered and the city was invoiced for $349,000. (1.6 points) 5. On December 20, the city paid for the fire truck. (.7 points) 6. On January 21, 2016, the police department had an unplanned expenditure in the amount of $32,000 for water1 Budget Adoption and Encumbrance Accounting Transactions ACCT 410/Moncada/GA#113 points damage from a burst water pipe. To provide budgetary authorization for this expenditure, the city council votedto transfer a portion of the unexpended appropriation for building repairs from Culture and Recreation to PublicSafety. What journal entry would be recorded? (.7 points) 7. Granite City has a fiscal year that begins on July 1, 2015 and ends on June 30, 2016. Assume that at year-endencumbrances outstanding for normal purchasing activities totaled $25,000. What two entries are recorded onJune 30, 2016, when the city elects to disclose the intended acquisition on the balance sheet?(1.6points) 8. What closing entry is required regarding only the budget adoption transaction? (3 points) 9. What two entries are recorded on July 1, 2016? (1 point) 2