Prepare journal entries for the City of Pudding's governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements. A new truck for the sanitation department was ordered at a cost of $114,250. The city print shop did $3,600 worth of work for the school system (but has not yet been paid). An $11 million bond was issued to build a new road. Cash of $159,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund. The truck ordered in (a) is received at an actual cost of $116,650. Payment is not made at this time. Cash of $37,100 is transferred from the general fund to the capital projects fund. A state grant of $30,000 is received that must be spent to promote recycling. The first $5,700 of the state grant received in (g) is appropriately expended.

Answer and Explanation;

City of Pudding's governmental funds

General JournalDebitCredit

a. General Fund

Dr Encumbrances Control $114,250

Cr Fund Balance - Reserved for Encumbrances $114,250

b. General Fund

Dr Expenditures (or Supplies) $3,600

Cr Due to Internal Service Fund $3,600

c. Capital Projects Fund

Dr Cash $11,000,000

Cr Other Financing Sources - Bonds Proceeds $11,000,000

d. General Fund

Dr Other Financing Uses - Transfers Out - Swimming Pool $159,000

Cr Cash $159,000

e. General Fund

Dr Fund Balance - Reserved for Encumbrances $114,250

Cr Encumbrances Control $114,250

Dr Expenditures $116,650

Cr Vouchers Payable $116,650

f. General Fund

Dr Other Financing Uses - Transfers Out $37,100

Cr Cash $37,100

Dr Capital Projects FundCash $37,100

Other Financing Sources - Transfers In $37,100

g. Special Revenue

Dr FundCash $30,000

Cr Deferred Revenues $30,000

h. Special Revenue Fund

Dr Deferred Revenues $5,700

Cr Revenues $5,700

Dr Expenditures $5,700

Cr Cash $5,700