Transactions:
1. A pickup truck purchased seven years ago for $30 with General Fund money was sold for $5. The government's proprietary funds usually depreciate this type of asset over a 10-year period using straight-line depreciation with zero (0) salvage value and disposes of assets at the end of its useful life.
2. Sold land for $300, which had been used many years ago as a public park. The land had been purchased for $140.
3. The county purchased a police vehicle for $22 and paid cash.
4. The government signed a contract for $5,000 for construction of an addition to the jail.
5. The contractor billed the county for 40% of the work on the jail addition. The actual cost of the work was $2,200. The county paid all but 10% of the amount billed. The balance is to be paid upon completion and approval of the project. The state was billed for its 30% of the project based on an expenditure-driven grant. (See entry #4 and #6)
6. The contractor billed the county $2,800 for the remainder of the work on the jail. The county approved the facility and paid the contractor all amounts owed. The state was billed for its portion of the work. (See entries #4, #5, and #7)
7. The state reimbursed only $1,400. Other costs were disallowed for reimbursement. (See entries #5 and #6)
Requirement: Prepare the general journal entries using standard fund-type terminology, identifying the fund or nonfund accounts for which the entry is being prepared. Appropriate abbreviations are acceptable (e.g., GF, SRF, CPF, DSF, GCA, GLTL, OFS, OFU). If no entry is required, write “No Entry Required” and briefly explain why. Do not include formal entry explanations or dates, but include any important assumptions made and all calculations.
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