The City of Electri entered the following transactions during 2014:
1.Borrowed $120,000 for a six-month term,to be paid upon receipt of property tax payments which were previously billed.
2.Used the funds borrowed to purchase a new fire truck.The truck is expected to have a 15-year useful life,and a $5,000 residual value.
3.Received $90,000 cash from a state grant.Funds are restricted for the purchase of a second fire truck.
4.Used the grant funds received to purchase a second fire truck.The truck is expected to have a 15-year useful life,and a $5,000 residual value.
5.Nonreciprocal transfer of $50,000 to the Debt Service Fund to be used toward repayment of the note.
Required:
Prepare the journal entries in the General Fund for the transactions.

Question

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The Answer of The City of Electri entered the following transactions during 2014:
1.Borrowed $120,000 for a six-month term,to be paid upon receipt of property tax payments which were previously billed.
2.Used the funds borrowed to purchase a new fire truck.The truck is expected to have a 15-year useful life,and a $5,000 residual value.
3.Received $90,000 cash from a state grant.Funds are restricted for the purchase of a second fire truck.
4.Used the grant funds received to purchase a second fire truck.The truck is expected to have a 15-year useful life,and a $5,000 residual value.
5.Nonreciprocal transfer of $50,000 to the Debt Service Fund to be used toward repayment of the note.
Required:
Prepare the journal entries in the General Fund for the transactions.

The City of Electri Entered the Following Transactions During 2014