60.1K

Verified Solution

Link Copied!

A citys General Fund received cash from the following sources during fiscal year 2022. All the receipts were credited to revenue accounts.

Identify the incorrect credits (some may be correct), and make journal entries to correct them.

1. The General Fund received $10,500 from the Debt Service Fund when the Debt Service Fund was closed out after a bond issue was fully paid.

2. The General Fund received $15,750 from the Parks Special Revenue Fund for that funds share of the cost of an electric bill previously paid by the General Fund. The receipt was in response to a billing from the General Fund to the Parks Special Revenue Fund.

3. After meeting all eligibility requirements, the General Fund received $21,000 from the state as a grant that could be used at any time.

4. The General Fund received $26,250 from the state as an advance on a grant. The state required the city to use the grant for expenditures to be incurred during 2023.

5. The General Fund received $31,500 from the collection of parking meter fees. The legislation establishing the fee said the revenues could be used for the citys general purposes.

Note: If no journal entry is required, select "Debit - No entry needed." and "Credit - No entry needed." as your respective debit and credit answers and leave the Debit and Credit amounts blank.

Note: If no journal entry is required, select "Debit - No entry needed." and "Credit - No entry neec

Answer & Explanation Solved by verified expert

See Answer