amounts to the nearest dollar.)4-5 Adjusting Entries for Inventory of Supplies. The Village of Baxter uses thepurchases method of accounting for its inventories of supplies in the GeneralFund. GASB standards, however, require that the consumption method be usedfor the government-wide financial statements. Because its computer system isvery limited, the Village uses a periodic inventory system, adjusting inventorybalances based on a physical inventory of supplies at year-end. When suppliesare received during the year, the Village records expenditures and expenses inthe general journals of the General Fund and governmental activities, respee-tively. The Village's inventory records showed the following information for thefiscal year ending December 31, 2011:Balance of inventory, December 31, 2010Purchases of inventory during 2011Balance of inventory, December 31, 2011$140,000720,000155,000Requireda. Provide the required adjusting entries at the end of 2011, assuming that theDecember 31, 2011, balance of Inventory of Supplies has been confirmed byphysical count. Make entries in the general journals of both the General Fund(omitting subsidiary detail) and governmental activities at the government-wide level.b. Assume that the General Fund uses the consumption method for reportinginventories of supplies rather than the purchases method. Make the requiredadjusting entries for the General Fund and government21 activities at the

Inventory recording can be done in various ways which is chosen by the business according to the…

Provide the required adjusting entries at the end of 2011, assuming that the December 31, 2011, balance of Inventory of Supplies has been confirmed by physical count. Make entries in the general journals of both the General Fund (omitting subsidiary detail) and governmental activities at the government-

Provide the required adjusting entries at the end of 2011, assuming that the December 31, 2011, balance of Inventory of Supplies has been confirmed by physical count. Make entries in the general journals of both the General Fund (omitting subsidiary detail) and governmental activities at the government-

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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Campbell County uses the consumption method to record all inventories and prepayments. The County has a 3/31 fiscal year-end. On April 1, 2015, the county purchased a two-year insurance policy at a total cost of $400,000, paying for the policy out of the general fund. In the fund financial statements, the amount of insurance expenditures for the fiscal year ended 3/31/2016 would be A.) $400,000. B.) $300,000. C.) $200,000. D.) $100,000.
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70. Which of the following is not among the other reports required to be submitted by government entities to COA? Pre-closing trial balances Schedule showing the regional breakdowns of income and expenses Post-closing trial balance A completed 14-column worksheet in yellow color
Assume that the City of Pasco maintains its books and records in a manner that facilitates preparation of the fund financial statements. The city engaged in the following transactions related to its general fund during the current fiscal year. The city formally integrates the budget into the accounting records. The city does not maintain an inventory of supplies. All amounts are in thousands. Prepare, in summary form, the appropriate journal entries. (a) The city council approved a budget with revenues estimated to be $800 and expenditures of $785. (b) The city ordered supplies at an estimated cost of $25 and equipment at an estimated cost of $20. (c) The city incurred salaries and other operating expenses during the year totaling $730. The city paid for these items in cash. (d) The city received the supplies at an actual cost of $23. (e) The city collected revenues of $795.
Sohar municipality has given the order for supplies on 10 January 2020 for the cost RO 15,500 and recorded the encumbrance in the general fund account. On 25th January Sohar municipality cancelled the supplies order due to an unavoidable situation and recorded it in the general fund account. Which one of the following will be the effect of the cancellation of a supplies purchase order? a. All of the options b. No change in the unassigned fund balance c. Unassigned fund balance will decrease RO 15,500 d. Unassigned fund balance will increase RO 15,500
please explain why the option is correct and remainings are incorrect
The City of Grinders Switch maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare government-wide statements. 1. General fixed assets as of the beginning of the year, which had not been recorded, were as follows: Land Buildings Improvements Other Than Buildings Equipment Accumulated Depreciation, Capital Assets $ 7,700,000 33,398,400 14,839,400 11,569,000 25,333,000 2. During the year, expenditures for capital outlays amounted to $7,510,000. Of that amount, $4,806,400 was for buildings; the remainder was for improvements other than buildings. 3. The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements other than…
Preparation of journal entries for government-wide financial statements and preparation of government-wide financial statements The following additional information is furnished to complete this part of the problem. Croton has no activities other than governmental activities. The city’s government-wide statement of net position for the year ended December 31, 2018, showed general capital assets of $14,000 and related accumulated depreciation of $6,400. Depreciation expense on Croton’s general capital assets for 2019 (including assets acquired in 2019) was $700, all of which was applicable to public safety. The city’s government-wide statement of net position for the year ended December 31, 2018, showed bonds payable of $5,500. All the debt had been issued to finance capital assets. Analysis of Croton’s debt service requirements showed that $700 of the total bonds payable as of December 31, 2019, should be reported as current because it is due to be paid during 2020. The city’s…
P4-43. (Encumbrance and expenditure accounting) The city council made an appropriation to the police department of $95,000 for the purchase of supplies and equipment. The following transactions and events occurred regarding this appropriation. Prepare an appropriations ledger like Table 4-2 using columns for Appropriations, Encumbrances (Dr. and Cr.), Expenditures, and Available Appropriations. Then, prepare journal entries to record the transactions and events. Post the appropriation amount and the jourmal entries to the appropriations ledger. Charge all expenditures to Supplies and equipment. Make sure your final posting shows the remaining amount available for spending. 1. The department placed purchase order (PO) 1 for 5 motorcycles, estimated to cost $10,000 each. 2. The department placed PO 2 for crime prevention supplies at an estimated cost of $30,000. 3. The motorcycles ordered in PO 1 arrived in good condition. The invoice of $50,000 was approved for payment. 4. PO 3 was…
Question 1 The account Deferred Inflows of Resources - Unavailable Revenues is used in governmental funds to record Property taxes that have been collected but not yet earned. Property taxes that will not be collected within 60 days of fiscal year end. Property taxes that are considered uncollectible. Uncollectible and unearned property taxes could be included in Deferred Inflows of Resources Unavailable Revenues.
Assume that the Cty of Coyote has already produced fts financlal statements for December 31, 2017 and the year then ended. The citys general fund was only for education and parks. Its capital projects funds worked with each of these functions at times during the current year The city also had established an enterprise fund to account for Its art museum.