General Fund Entries

• Payment of Salaries:

  • Debit: Expenditures—Salaries

  • Credit: Cash

• Recognition of Supplies Consumption:

  • Debit: Expenditures—Supplies

  • Credit: Supplies Inventory

  • Note: This entry reflects the "consumption method" where supplies are recorded as an expenditure when used.

• Transfer to Debt Service Fund:

  • Debit: Other Financing Uses—Transfers Out—Debt Service Fund

  • Credit: Cash

Debt Service Fund Entries

• Receipt of Transfer:

  • Debit: Cash

  • Credit: Other Financing Sources—Transfers In—General Fund

• Payment of Bond Principal and Interest:

  • Debit: Expenditures—Bonds

  • Debit: Expenditures—Interest

  • Credit: Cash

Capital Projects Fund Entries

• Recognition of Construction Expenditure:

  • Debit: Expenditures—Office Building

  • Credit: Vouchers Payable

• Recording Bond Issuance:

  • Debit: Cash

  • Credit: Other Financing Sources—Bond Proceeds

  • Note: In this fund, the bond proceeds provide the financial resources to pay for the construction.

Special Revenue Fund Entries

• Collection of Tolls:

  • Debit: Cash

  • Credit: Revenues—Toll Receipts

  • Note: These funds are restricted for specific uses like highway maintenance.

Custodial (Agency) Fund Entries

• Collection of Taxes for Other Entities:

  • Debit: Cash

  • Credit: Due to Other Governments

  • Note: Because the city is acting only as an agent, no revenue is recognized; it is simply a liability to pass the cash along.

Year-End Entries

• Closing Budgetary Accounts:

  • Debit: Appropriations

  • Debit/Credit: Budgetary Fund Balance (reversing original entry)

  • Credit: Estimated Revenues

• Closing Activity Accounts:

  • Debit: Revenues

  • Credit: Expenditures

  • Credit: Other Financing Uses

  • Debit/Credit: Fund Balance—Unassigned (balancing amount