Prepare the journal entries needed to account for each transaction in the General Fund. 1 answer below »

 
   

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General Fund Journal Entries

Several independent financial activities of a governmental unit are given below. Revenue from the sale of licenses and permits for the first two months totaled $15,000. Land that had been donated previously was sold for $100,000. An order was placed for the purchase of a new fire engine at a price of $130,000. Bonds with a face value of $500,000 were issued at par value to finance a new park. A $250,000 grant was received from the federal government to help improve the local schools. The new fire engine was received and accepted. The approved price, however, was $140,000 rather than $130,000.

Required:

Prepare the journal entries needed to account for each transaction in the General Fund.