The following transactions represent situations frequently encountered in accounting for municipal governments.
Each transaction is independent of the others:
1. The City Council of ABC City adopted a budget for the general operations of the government during the new fiscal year. Revenues were estimated at $695,000. Legal authorizations for budget expenditures were $650,000.
2. Taxes of $160,000 were levied for the special revenue fund of Middletown. One percent was estimated to be uncollectible.
3. (a) On July 25, 2018, office supplies estimated to cost $2,390 were ordered for the city manager's office of Bullville. Bullville, which operates on a calendar year, does not maintain an inventory of such supplies.
(b) The supplies ordered July 25 were received August 9, 2018, accompanied by an invoice of $2,500.
4. On October 10, 2018, the general fund of Wellington repaid to the utility fund a loan of $1,000 plus $40 interest. The loan had been made earlier in the fiscal year.
5. A prominent citizen died and left the city undeveloped land for a school site. The donor's cost fo the land was $55,000. The fair value of the land was $85,000.
6. (a) On March 6, 2018, the city issued of 6% special assessment bonds payable March 6, 2023 at face value of $90,000. Interest is payable annually. The city, which operates on a calendar year basis, will supervise the use of the proceeds to finance a curbing project.
(b) On October 26, 2018, the full 84,000 cost of the completed curbing project was recorded and charged to the citizens benefitting from the project.
7. (a) A citizen donated common stock valued at $22,000 to the city under a trust agreement. Under the terms of the agreement, the principal amount is to be kept intact; use of revenue from the stock is restricted to financing college scholarships for needy students.
(b) On December 14, 2018, dividends of $1,100 were received on the stock donated by the citizen.
8. On February 23, 2018, the Town of Lincoln, which operates on a calendar year basis, issued 5% general obligation bond with a face value of $300,000 payable February 23, 2028, to finance an addition to the City Hall. Total proceeds were $308,000.
For each situation above prepare the required journal entry(entries) in the fund financial statements.