Assume that the County of Katerah maintains its books and records in a manner that facilitates preparation of the fund financial statements. The county formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At the beginning of the fiscal year, the county had the following balances in its accounts. All amounts are in thousands. Prepare the necessary entries for the current fiscal year. Cash $200 Fund balance unassigned 50 Reserve for encumbrances (committed or assigned) 150 (a) The county made the appropriate entry to restore the prior-year purchase commitments. (b) The county board approved a budget with revenues estimated to be $800 and expenditures of $750. (c) The county received the items that had been ordered in the prior year at an actual cost of $135. (d) The county ordered supplies at an estimated cost of $50 and equipment at an estimated cost of $70. (e) The county incurred salaries and other operating expenses during the year totaling $600. The county paid these items in cash. (f) The county received the equipment at an actual cost of $75. (g) The county earned and collected, in cash, revenues of $810
Assume that the County of Katerah maintains its books and records in a manner that facilitates preparation of the fund financial statements. The county formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At the beginning of the fiscal year, the county had the following balances in its accounts. All amounts are in thousands. Prepare the necessary entries for the current fiscal year.
Cash $200
Fund balance unassigned 50
Reserve for encumbrances (committed or assigned) 150
(a) The county made the appropriate entry to restore the prior-year purchase commitments.
(b) The county board approved a budget with revenues estimated to be $800 and expenditures of $750.
(c) The county received the items that had been ordered in the prior year at an actual cost of $135.
(d) The county ordered supplies at an estimated cost of $50 and equipment at an estimated cost of $70.
(e) The county incurred salaries and other operating expenses during the year totaling $600. The county paid these items in cash.
(f) The county received the equipment at an actual cost of $75.
(g) The county earned and collected, in cash, revenues of $810.
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