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Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?

The City of Batavia ordered new computer equipment for $30,000 on November 3, 20X2. The equipment had not been received by December 31, 20X2, Batavia's fiscal year-end. Required: a. Assume that the city has a policy that outstanding encumbrances lapse at year-end. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. 1. Prepare the entry to record the encumbrance on November 3, 20X2. 2. Prepare the entries required on December 31, 20X2. 3. Assuming that the city council accepts outstanding encumbrances in its budget for the next fiscal period (20X3), prepare entries on January 1, 20X3. 4. Prepare entries on January 18, 20X3, when the equipment was received with an invoice cost of $30,600 and accepted by the city. 5. Prepare the entry on December 31, 20X3, to close the expenditures account. View transaction list Record the entry for the equipment order and encumbrances in 20X2. 2 Record the entry to chase the remaining budgeted encumbrances in 20XZ. 3 Record the entry to reserve the actual fund balance for the outstanding encumbrances at year-end in 20X2. Record the entry to reverse the prior-year encumbrance reserve in 20X3. 5 Record the entry to establish the budgetary control over the encumbrances renewed from the prior year in 20X3. Note: = journal entry has been entered Record entry Clear entry r (1 X Debit Credit View general journal
Transcribed Image Text:The City of Batavia ordered new computer equipment for $30,000 on November 3, 20X2. The equipment had not been received by December 31, 20X2, Batavia's fiscal year-end. Required: a. Assume that the city has a policy that outstanding encumbrances lapse at year-end. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. 1. Prepare the entry to record the encumbrance on November 3, 20X2. 2. Prepare the entries required on December 31, 20X2. 3. Assuming that the city council accepts outstanding encumbrances in its budget for the next fiscal period (20X3), prepare entries on January 1, 20X3. 4. Prepare entries on January 18, 20X3, when the equipment was received with an invoice cost of $30,600 and accepted by the city. 5. Prepare the entry on December 31, 20X3, to close the expenditures account. View transaction list Record the entry for the equipment order and encumbrances in 20X2. 2 Record the entry to chase the remaining budgeted encumbrances in 20XZ. 3 Record the entry to reserve the actual fund balance for the outstanding encumbrances at year-end in 20X2. Record the entry to reverse the prior-year encumbrance reserve in 20X3. 5 Record the entry to establish the budgetary control over the encumbrances renewed from the prior year in 20X3. Note: = journal entry has been entered Record entry Clear entry r (1 X Debit Credit View general journal
4 6 the outstanding encumbrances at year-end in 20X2. 5 Record the entry to establish the budgetary control over the encumbrances renewed from the prior year in 20X3. 7 Record the entry to reverse the prior-year encumbrance reserve in 20X3. Record the entry to remove the budgetary reserve for the venth goods received in 20X3. Record the expenditure for the goods received at the actual cost in 20X3. 8 Record the entry to close the 20X3 expenditures account. Note : = journal entry has been entered Record entry Clear entry K
Transcribed Image Text:4 6 the outstanding encumbrances at year-end in 20X2. 5 Record the entry to establish the budgetary control over the encumbrances renewed from the prior year in 20X3. 7 Record the entry to reverse the prior-year encumbrance reserve in 20X3. Record the entry to remove the budgetary reserve for the venth goods received in 20X3. Record the expenditure for the goods received at the actual cost in 20X3. 8 Record the entry to close the 20X3 expenditures account. Note : = journal entry has been entered Record entry Clear entry K
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