Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 16, Problem 13P
A purchase order for $3,000 is recorded in the general fund for the purchase of a new computer. The computer is received at an actual cost of $3,020. Which of the following statements is correct?
- a. Machinery is increased in the general fund by $3,020.
- b. An encumbrance account is reduced by $3,020.
- c. An expenditure is increased by $3,020.
- d. An expenditure is recorded for the additional $20.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A Government University has RO 15000 cash on hand in an appropriated fund. The University signs a purchase order for RO 7000 to purchase new projectors and systems deliverable in three months. The purpose of writing encumbrance in the ledger is:
Look at the following outlays and identify whether each is normally considered a capital expenditure or an operating expenditure.
An outlay of $4,000,000 for a major research and development program
An outlay of $3,200 for computer paper and toner.
An outlay of $4,000 for a marketing report on possible sales next month.
An outlay of $1,750,000 to purchase copyrights from an author
49) A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000. What entry is prepared by the Capital Projects Fund?
A) Debit Expenditures $1,000,000, Credit Liability $1,000,000
B) Debit Building $1,000,000, Credit Expenditures $1,000,000
C) Debit Other Financing Uses $1,000,000, Credit Expenditures $1,000,000
D) Debit Encumbrances $1,000,000, Credit Reserve for Encumbrances $1,000,000
50) Which statement below is incorrect with respect to the Government-wide financial statements?
A) All governmental fund categories must convert to the modified accrual basis of accounting.
B) It is necessary to eliminate interfund balances within the governmental funds.
C) Capital lease liabilities associated with governmental funds must be included on the Government-wide financial statements.
D) All fixed assets and long-term debt for governmental funds must be included on the Government-wide financial statements.
Chapter 16 Solutions
Advanced Accounting
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - Prob. 4QCh. 16 - What measurement focus is used in fund financial...Ch. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - In applying the current financial resources...Ch. 16 - Prob. 9QCh. 16 - What are the five fund types within the...
Ch. 16 - Prob. 11QCh. 16 - What are the four fund types within the fiduciary...Ch. 16 - Prob. 13QCh. 16 - Fund financial statements have separate columns...Ch. 16 - The general fund of a city reports assets of...Ch. 16 - Why are budgetary entries recorded in the...Ch. 16 - How are budget results shown in the financial...Ch. 16 - Prob. 18QCh. 16 - Prob. 19QCh. 16 - Prob. 20QCh. 16 - How do governmental funds report capital outlay in...Ch. 16 - Prob. 22QCh. 16 - Prob. 23QCh. 16 - Prob. 24QCh. 16 - How is the issuance of a long-term bond reported...Ch. 16 - Prob. 26QCh. 16 - Prob. 27QCh. 16 - Prob. 28QCh. 16 - What is an internal exchange transaction, and how...Ch. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Which of the following statements is correct about...Ch. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - The City of Bagranoff holds 90,000 in cash that...Ch. 16 - Prob. 11PCh. 16 - The general fund pays rent for two months. Which...Ch. 16 - A purchase order for 3,000 is recorded in the...Ch. 16 - At the end of the current year, a government...Ch. 16 - A government buys equipment for its police...Ch. 16 - A city acquires supplies for its fire department...Ch. 16 - Prob. 17PCh. 16 - The state government passes a law requiring...Ch. 16 - The state awards a grant of 50,000 to the Town of...Ch. 16 - A city issues a 60-day tax anticipation note to...Ch. 16 - A city issues five-year bonds payable to finance...Ch. 16 - The City of Dylan issues a 10-year bond payable of...Ch. 16 - Prob. 23PCh. 16 - A 110,000 payment is made on a long-term...Ch. 16 - A city constructs a special assessment project (a...Ch. 16 - A city constructs curbing in a new neighborhood...Ch. 16 - Which of the following is an example of an...Ch. 16 - The governmental funds of the City of Westchester...Ch. 16 - Government officials of Hampstead County ordered a...Ch. 16 - A local government has the following transactions...Ch. 16 - Prepare journal entries for the City of Puddings...Ch. 16 - Prepare journal entries for a local government to...Ch. 16 - The following unadjusted trial balances are for...
Knowledge Booster
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
- On October 1, 2022, the Integrity Main Office established a sales agency in Ortigas.· The main office sent samples of its merchandise amounting to P8,400 and working fund amounting to P72,000 to be maintained on the imprest basis. The samples sent were intended to last until June 1, 2023.· During the first two months of operations, the agency transmitted to the home office sale of goods costing P291,600, but the home office was not able to fill-up 25% of the said transmitted sales order.· Collections from customers amounted to P73,941, net of 2% sales discount.· Payments made by the agency during October and November were as follows: annual rent of P57,600, advertising expense worth P5,600 and utilities amounting to P7,200.· It purchased an equipment worth P9,000 which will be depreciated at 20% per annum.· The gross profit on sales agency order is 20% of sales Net income of the agency for the two months ended November 30, 2022 is: a. P26,866 b.…arrow_forwardOn April 1, Paine Co. began construction of a small building. Payments of P120,000 were made monthly for four months beginning on April 1. The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted-average accumulated expenditures on the building by completing the schedule below: Date Expenditures Capitalization Period Weighted-Average Expenditures _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____arrow_forwardMinistry of Tourism makes an appropriation of RO 450,000 for the development of tourist places. The financial transactions during the year, Salary paid to employees RO 50,000. An order is placed for purchasing some equipment for RO 200,000 The amount was transferred to debt service fund RO 6,000. Which one of the following is unreserved fund balance? a. RO 206,000 b. RO 194,000 c. None of the options d. RO 450,000arrow_forward
- bri sports complex is a government organization. It signs a purchase order for RO 200,000 to purchase gym equipment, deliverable in two months. RO 1,000,000 is appropriated for this purchase order in the general fund. The remaining fund balance available for further expenditure is _________ a. None of the options b. RO 1,000,000 c. RO 1,200,000 d. RO 800,000arrow_forwardIbri township general fund acquired vehicles for the police department at the beginning of January 2018 at a total cost of RO 200,000. The vehicles are expected to last for 5 years and the residual value is nil (scrap value), Straight-line depreciation is used. On the Balance Sheet date for the governmental funds at December 2020, the police vehicles will be reported under assets in the general fund column at which of the following amounts? a. RO 160,000 b. None of the options c. RO 120,000 d. RO 90,000arrow_forwardDistinguishing capital expenditures from revenue expenditures Consider the following expenditures: Classify each of the expenditures as a capital expenditure or a revenue expenditure related to machinery.arrow_forward
- Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales tax Freight charges for shipment of equipment Insurance on the equipment for the first year Installation of equipment The equipment, including sales tax, was purchased on open account with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 $50,000 2,700 750 958 1,500 2 Record the purchase of equipment.arrow_forwardAssume that a town places an order for a truck with an estimated cost of $47,000. When the truck is delivered, the actual cost is $51,000. Prepare the journal entry to record the issuance of the purchase order and its payment when the truck is delivered.arrow_forwardThe Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund. Debits Credits Accounts payable $ 103,000 Accounts receivable $ 25,800 Accrued interest payable 28,900 Accumulated depreciation 46,500 Administrative and selling expenses 48,500 Allowance for uncollectible accounts 12,400 Capital assets 707,000 Cash 90,200 Charges for sales and services 553,000 Cost of sales and services 495,000 Depreciation expense 46,500 Due from General Fund 17,100 Interest expense 40,200 Interest revenue 4,300 Transfer in from General Fund 115,200 Bank note payable 625,300 Supplies inventory 18,300 Totals $ 1,488,600 $ 1,488,600…arrow_forward
- At the end of Year 1, how much is the balance of the assets account Production-in-Progress if WW Guy uses the percentage of completion method? see the options in attached screenshot.arrow_forwardGoodafternoon Please help with the following: a. list the detail current assets b. list the non-current assets c. list the liabilities d. list the non current liabilities e. list the net assets/equityarrow_forwardJohnson City purchased a fleet of snow removal trucks on April 1, 2021. The trucks had a cost of $20,000 with an estimated useful life of five years, and they were purchased by the general fund using cash. Address the following two questions in your written response : 1. What amount of expenditures would the governmental funds report for this transaction in fiscal year ended December 31, 2021? 2. If these trucks had been purchased by an enterprise fund instead of the general fund, what amount of expense would be associated with the trucks for fiscal year ended December 31, 2021?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Property, Plant and Equipment (PP&E) - Introduction to PPE; Author: Gleim Accounting;https://www.youtube.com/watch?v=e_Hx-e-h9M4;License: Standard Youtube License