Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
See similar textbooks
icon
Related questions
Question

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Double entry bookkeeping system
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS