A federal agency receives a separate allotment to finance the salary costs of its program. The allotment is sufficient to cover salaries earned in the last month of the fiscal year but paid early in the next fiscal year. The account Allotments-realized resources has a credit balance of $300,000. The agency maintains budgetary control by means of a vacancy control system. The following events and transactions occurred at the agency: 1. A disbursement schedule is sent to Treasury requesting salary checks- $275,000. 2. Treasury notifies the agency that payment was made. 3. The agency accrues salaries of $18,000 at the end of the fiscal year. 4. The agency accrues $20,000 for unused vacation leave. Budgetary resources for vacation leave are provided when leave is actually taken. a) Make the budgetary entries needed to record the above transactions. Enter accounts in order of magnitude (largest to smallest amounts), debits first. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit 1. To record use of resources for salaries 2. To record confirmed payment by Treasury. 3. To record use of resources for salary accrual. 4. To record accrual for unfunded leave. O O
A federal agency receives a separate allotment to finance the salary costs of its program. The allotment is sufficient to cover salaries earned in the last month of the fiscal year but paid early in the next fiscal year. The account Allotments-realized resources has a credit balance of $300,000. The agency maintains budgetary control by means of a vacancy control system. The following events and transactions occurred at the agency: 1. A disbursement schedule is sent to Treasury requesting salary checks- $275,000. 2. Treasury notifies the agency that payment was made. 3. The agency accrues salaries of $18,000 at the end of the fiscal year. 4. The agency accrues $20,000 for unused vacation leave. Budgetary resources for vacation leave are provided when leave is actually taken. a) Make the budgetary entries needed to record the above transactions. Enter accounts in order of magnitude (largest to smallest amounts), debits first. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account Debit Credit 1. To record use of resources for salaries 2. To record confirmed payment by Treasury. 3. To record use of resources for salary accrual. 4. To record accrual for unfunded leave. O O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Accounting for Salaries**
A federal agency receives an allotment to finance the salary costs of its program. This allotment covers salaries earned in the last month of the fiscal year but paid early in the next fiscal year. The account Allotments—realized resources has a credit balance of $300,000. The agency maintains budgetary control through a vacancy control system. The events and transactions are as follows:
1. A disbursement schedule is sent to the Treasury requesting salary checks for $275,000.
2. Treasury notifies the agency that payment was made.
3. The agency accrues salaries of $18,000 at the end of the fiscal year.
4. The agency accrues $20,000 for unused vacation leave. Budgetary resources for vacation leave are provided when the leave is taken.
**Task: Make budgetary entries needed for the above transactions.**
- Enter accounts in order of magnitude (largest to smallest amounts), debits first.
- If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.
**Table: Budgetary Entries**
| Account | Debit | Credit |
|-----------------------------------------------------------|-------|--------|
| **1. To record use of resources for salaries** | ▼ | 0 |
| | 0 | 0 |
| **2. To record confirmed payment by Treasury** | ▼ | 0 |
| | 0 | 0 |
| **3. To record use of resources for salary accrual** | ▼ | 0 |
| | 0 | 0 |
| **4. To record accrual for unfunded leave** | ▼ | 0 |
| | 0 | 0 |
**Explanation:**
The table above is used for documenting the budgetary entries for the listed transactions. Each entry has a dropdown menu for selecting the account and fields for debit and credit amounts. The amounts need to be entered in descending order and if no specific entry is necessary, '0' is entered in the fields.
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