Assume the Federal Interstate Commission began the fiscal year with the following account balances: FEDERAL INTERSTATE COMMISSION Trial BalanceOctober 1, 2020 Debits Credits Fund Balance with Treasury$810,000 Supplies 107,000 Equipment 1, 370,000 Accumulated Depreciation $484,000 Accounts Payable 130,000 Wages Payable 85,000Cumulative Results of Operations 1,588,000 $2,287,000 $2,287,000 Congress passed a spending bill providing $17,200, 000 to fund the agency's operations for the year. During the first quarter the commission processed the following items for payment (all items were paid by Treasury in the first quarter). Accounts payable$130,000 Wages payable 85,000 Salaries and benefits 507,000 Supplies 524,000 Contracted services 2,200,000 Grants 1,020,000 Equipment 620,000 Total$5,086,000 Unpaid wages at the end of the quarter totaled $37,000. In addition to the items paid in item 2, the commission received supplies of $24,000 and contracted services of $82,000 that are to be processed for payment in January. Unused supplies on hand totaled $238,000 at December 31. Depreciation for the quarter is $84,000. Required: a. Prepare journal entries in the proprietary accounts for the events described above. b. Prepare a Statement of Changes in Net Position for the quarter ended December 31. (Assume the amount of appropriations used is $3,969,000.) c. Prepare a Balance Sheet as of December 31.
Assume the Federal Interstate Commission began the fiscal year with the following account balances: FEDERAL INTERSTATE COMMISSION Trial BalanceOctober 1, 2020 Debits Credits Fund Balance with Treasury$810,000 Supplies 107,000 Equipment 1, 370,000 Accumulated Depreciation $484,000 Accounts Payable 130,000 Wages Payable 85,000Cumulative Results of Operations 1,588,000 $2,287,000 $2,287,000 Congress passed a spending bill providing $17,200, 000 to fund the agency's operations for the year. During the first quarter the commission processed the following items for payment (all items were paid by Treasury in the first quarter). Accounts payable$130,000 Wages payable 85,000 Salaries and benefits 507,000 Supplies 524,000 Contracted services 2,200,000 Grants 1,020,000 Equipment 620,000 Total$5,086,000 Unpaid wages at the end of the quarter totaled $37,000. In addition to the items paid in item 2, the commission received supplies of $24,000 and contracted services of $82,000 that are to be processed for payment in January. Unused supplies on hand totaled $238,000 at December 31. Depreciation for the quarter is $84,000. Required: a. Prepare journal entries in the proprietary accounts for the events described above. b. Prepare a Statement of Changes in Net Position for the quarter ended December 31. (Assume the amount of appropriations used is $3,969,000.) c. Prepare a Balance Sheet as of December 31.
Chapter12: Money And Banking
Section: Chapter Questions
Problem 10E
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Transcribed Image Text:Assume the Federal Interstate Commission began the fiscal year with the following account balances: FEDERAL
INTERSTATE COMMISSION Trial BalanceOctober 1, 2020 Debits Credits Fund Balance with Treasury$810,000 Supplies
107,000 Equipment 1, 370,000 Accumulated Depreciation $484,000 Accounts Payable 130,000 Wages Payable
85,000Cumulative Results of Operations 1,588,000 $2,287,000 $2,287,000 Congress passed a spending bill
providing $17,200, 000 to fund the agency's operations for the year. During the first quarter the commission processed
the following items for payment (all items were paid by Treasury in the first quarter). Accounts payable$130,000
Wages payable 85,000 Salaries and benefits 507,000 Supplies 524,000 Contracted services 2,200,000 Grants
1,020,000 Equipment 620,000 Total$5,086,000 Unpaid wages at the end of the quarter totaled $37,000. In addition
to the items paid in item 2, the commission received supplies of $24,000 and contracted services of $82,000 that are to
be processed for payment in January. Unused supplies on hand totaled $238,000 at December 31. Depreciation for the
quarter is $84,000. Required: a. Prepare journal entries in the proprietary accounts for the events described above. b.
Prepare a Statement of Changes in Net Position for the quarter ended December 31. (Assume the amount of
appropriations used is $3,969,000.) c. Prepare a Balance Sheet as of December 31.
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