Instructions:

Presented below are transactions and events that must be recorded by The City of Gasby, Massachusetts. Analyze each transaction and event to determine the applicable fund and prepare the required entry or entries.

Use the space provided in the heading of journal entry form to indicate the name of the fund in which the entry would be recorded.

You are not required to indent the names of the accounts that you credit; just include their amounts in the credit column.

1. Fiscal year 2022 for the City of Gasby began on July 1, 2021. The city council approved the following budget for the General Fund: (8 points)

Estimated Revenues $120,000,000

Appropriations 112,500,000

Authorized Long-term Borrowing 5,000,000

Transfers to Capital Projects for Bridge Construction 8,000,000

Transfers to Debt Service Fund for Debt Payments 2,400,000

Transfers from Municipal Water and Sewer Fund 2,250,000

RECORDED IN:
DATE	ACCOUNT NAMES		DEBIT	CREDIT

2. During July 2021, the City of Gasby issued licenses and permits and collected cash in the amount to $24,000. (2 points for the fund plus 4 points for the entry = 6 points)

RECORDED IN:
DATE	ACCOUNT NAMES		DEBIT	CREDIT

3. On July 1, 2021, the City of Gasby issued $5,000,000 of five-year, bonds to help finance general government operations. The bonds bear 4.5% due annually on June 30 with a principal payment of $1,000,000 also due on that date. The bonds were issued at 100.

a. Record the issuance of the bonds on July 1, 2021. (2 points for the fund plus 2 points for the entry = 4 points)

RECORDED IN:
DATE	ACCOUNT NAMES		DEBIT	CREDIT

b. On September 1, 2021, the city transferred the funds budgeted for general debt service to the applicable fund.

1) Recognize the transfer of the budgeted funds out of the applicable fund. (2 points for the fund plus 2 points for the entry = 4 points)

RECORDED IN:
DATE	ACCOUNT NAMES		DEBIT	CREDIT

2) Recognize the transfer of the budgeted fund into the applicable fund. (2 points for the fund plus 2 points for the entry = 4 points)

RECORDED IN:
DATE	ACCOUNT NAMES		DEBIT	CREDIT

3) Was this transfer a reciprocal transfer or a non-reciprocal transfer? Briefly explain (4 points)

c. On June 30, 2022, the City of Gasby made the required payments on the bonds issued on July 1, 2022 from the applicable fund. (2 points for the fund plus 4 points for the entry = 6 points)

RECORDED IN:
DATE	ACCOUNT NAMES		DEBIT	CREDIT