The town of Stow was incorporated and began governmental operations on July 1,20X8.Stow's transactions and events for the fiscal year ended June 30,20X9,are listed below.Stow uses the consumption method of accounting for purchases of supplies.Encumbrances do not lapse at year end.
Required:
Prepare the journal entry(ies)required in the general fund for each of the following transactions or events.
a.The town budget was approved,providing for revenues of $800,000,a $40,000 transfer to establish an internal service fund (ISF),and expenditures of $750,000.
b.Property taxes were levied in the amount of $700,000,with 4 percent of the total estimated to be uncollectible.
c.Purchase orders were issued in the amount of $90,000 for equipment,and $635,000 for other goods and services.
d.Collections for fines and licenses totaled $99,000 for the year.
e.Property taxes collected amounted to $680,000;the balance was reclassified as delinquent,and the allowance for uncollectible taxes was reduced to $15,000.
f.The equipment ordered was received,and a voucher was issued for the final invoice cost of $91,000.
g.All but $12,000 of the other goods and services ordered was received.Vouchers were issued for the invoice cost of $622,000.
h.All but $10,000 of the vouchers issued during the year was paid.
i.A transfer in the amount of $40,000 was made to establish an internal service fund for the town.The general fund received services of $7,000 from the internal service fund during the year,with $2,000 remaining unpaid at year end.
j.Expenditures recorded for the year included the purchase of supplies.The estimated balance of supplies on hand at year end was $2,000.
k.A reserve was established at year end for the outstanding encumbrances,all of which will be honored in the next fiscal year.
l.Closing entries were made.

Which of the Following Items Should Not Be Included as Revenue

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