EBK ADVANCED FINANCIAL ACCOUNTING
EBK ADVANCED FINANCIAL ACCOUNTING
11th Edition
ISBN: 8220102796096
Author: Christensen
Publisher: YUZU
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Chapter 17, Problem 17.14P
To determine

Concept introduction:

General fund: It accounts for all financial resources except for those accounted for in another fund. It includes transactions for general governmental services provided by the entity’s executive, legislative, and judicial operations. The accounting for the general fund includes accounting for the inter fund activities on the general fund’s operating statement, the statement of revenues, expenditures, and changes in fund balance.

The entries to record budgeted and actual transactions for year ended June 30, 20X2.

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Explanation of Solution

    ParticularsDebit $Credit $
    Estimated revenues control3,000,000
    Appropriations control2,980,000
    Budgetary fund balance − unreserved20,000
    (Budgetary estimates recorded)
    Taxes receivable2,870,000
    Allowance for uncollectible taxes70,000
    Property tax revenue2,800,000
    (Property tax levy recorded in tax receivable account)
    Cash2,810,000
    Taxes receivable2,810,000
    (Received cash on account of property tax collections)
    Allowance for Uncollectible taxes40,000
    Tax receivable40,000
    (Allowance for uncollectible created for doubtful tax receivable)
    Cash130,000
    Miscellaneous receivables130,000
    (Cash received on account of Miscellaneous revenue)
    Fund Balance − Reserved for encumbrances60,000
    Fund balance − unreserved)60,000
    (Reversal of prior reserves which has been renewed)
    Encumbrances60,000
    Budgetary fund balance − reserved for encumbrances60,000
    (Record renewal of purchase commitments from prior year)
    Expenditures142,000
    Due to other funds142,000
    ((record liability to other funds for service received)
    Budgetary fund balance − reserved for encumbrances2,700,000
    Encumbrances2,700,000
    (Reverse for purchase order received)
    Expenditures2,700,000
    Vouchers payable2,700,000
    (Recording of expenditures)
    Budgetary fund balance − reserved for encumbrances60,000
    Encumbrances60,000
    (Reverse for purchase order received)
    Expenditures prior period58,000
    Vouchers payable58,000
    (Recording of actual expenditures for goods received)
    Due to other funds210,000
    Vouchers payable210,000
    (Record approval for payment to other funds)
    Vouchers payable2,640,000
    Cash2,640,000
    (Payments of vouchers during the period)
    Encumbrances91,000
    Budgetary fund balance − reserved for encumbrances91,000
    (Recording of encumbrances on May 10)
    (Closure of budgetary account)
  1. The budget for the year is estimated to be $3,000,000 and appropriations were made for $2,980,000 and the balance amount is unreserved.
  2. Taxes receivable is estimated to be $2,870,000 debited to receivable account and allowance for uncollectible is created remaining balance is credited to property tax revenue.
  3. Property tax collections received debited to the cash account and credited to the tax receivable account.
  4. Tax receivable worth $40,000 is expected to be uncollectible and written off from allowance for uncollectible.
  5. July 1, 20X1 taxes receivable balance $150,000
    20X2 tax levy2,870,000
    Less: Tax collected(2,810,000)
    Tax receivable final balance(170,000)
    Taxes written off as uncollectible$40,000
  6. Cash received on account of miscellaneous revenue and debited to cash account.
  7. Encumbrances of prior year renewed in the current year.
  8. Renewal of encumbrances of the prior year.
  9. Encumbrances for purchase commitment recorded.
  10. Liability on service received from other funds recognized in expenditures.
  11. Encumbrances of $2,700,000 reversed for purchase order received.
  12. Expenditure for the year recognized by crediting to vouchers payable account.
  13. Reversal of reserved encumbrances $60,000 on receipt of goods.
  14. Actual expenditure of $58,000 on goods received recognized.
  15. Amount due to other funds recognized and credited to vouchers payable.
  16. Vouchers worth $2,640,000 payable during the year paid and credited to the cash account.
  17. Encumbrances made on May 10 recorded.

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Chapter 17 Solutions

EBK ADVANCED FINANCIAL ACCOUNTING

Ch. 17 - When is the expenditure for inventories recognized...Ch. 17 - Prob. 17.12QCh. 17 - Prob. 17.13QCh. 17 - Prob. 17.14QCh. 17 - Prob. 17.15QCh. 17 - Prob. 17.1CCh. 17 - Prob. 17.2CCh. 17 - Prob. 17.3CCh. 17 - Prob. 17.1.1ECh. 17 - Prob. 17.1.2ECh. 17 - Prob. 17.1.3ECh. 17 - Prob. 17.1.4ECh. 17 - Prob. 17.1.5ECh. 17 - Prob. 17.2ECh. 17 - Prob. 17.3.1ECh. 17 - Prob. 17.3.2ECh. 17 - Prob. 17.3.3ECh. 17 - Prob. 17.3.4ECh. 17 - Prob. 17.3.5ECh. 17 - Prob. 17.3.6ECh. 17 - Prob. 17.3.7ECh. 17 - Prob. 17.3.8ECh. 17 - Prob. 17.3.9ECh. 17 - Prob. 17.3.10ECh. 17 - Prob. 17.4.1ECh. 17 - Prob. 17.4.2ECh. 17 - Prob. 17.4.3ECh. 17 - Prob. 17.4.4ECh. 17 - Prob. 17.4.5ECh. 17 - Prob. 17.4.6ECh. 17 - Prob. 17.4.7ECh. 17 - Prob. 17.4.8ECh. 17 - Prob. 17.4.9ECh. 17 - Prob. 17.4.10ECh. 17 - Prob. 17.5ECh. 17 - Prob. 17.6ECh. 17 - Prob. 17.7ECh. 17 - Computation of Revenues Reported on the Statement...Ch. 17 - Prob. 17.9ECh. 17 - Prob. 17.10ECh. 17 - Prob. 17.11ECh. 17 - Prob. 17.12ECh. 17 - General Fund Entries [AICPA Adapted] The following...Ch. 17 - Prob. 17.14PCh. 17 - Prob. 17.15PCh. 17 - Prob. 17.16PCh. 17 - Prob. 17.17PCh. 17 - Prob. 17.18.1PCh. 17 - Prob. 17.18.2PCh. 17 - Prob. 17.18.3PCh. 17 - Prob. 17.18.4PCh. 17 - Prob. 17.18.5PCh. 17 - Prob. 17.18.6PCh. 17 - Prob. 17.18.7PCh. 17 - Prob. 17.18.8PCh. 17 - Prob. 17.18.9PCh. 17 - Prob. 17.18.10PCh. 17 - Prob. 17.18.11PCh. 17 - Prob. 17.18.12PCh. 17 - Prob. 17.18.13PCh. 17 - Prob. 17.18.14PCh. 17 - Prob. 17.18.15PCh. 17 - Prob. 17.18.16PCh. 17 - Prob. 17.18.17PCh. 17 - Prob. 17.18.18PCh. 17 - Prob. 17.18.19PCh. 17 - Prob. 17.18.20PCh. 17 - Prob. 17.18.21PCh. 17 - Prob. 17.18.22PCh. 17 - Prob. 17.18.23PCh. 17 - Prob. 17.18.24PCh. 17 - Prob. 17.18.25PCh. 17 - Prob. 17.18.26PCh. 17 - Prob. 17.18.27PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.29PCh. 17 - Prob. 17.18.30PCh. 17 - Prob. 17.18.31PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.33PCh. 17 - Prob. 17.18.34PCh. 17 - Prob. 17.18.35PCh. 17 - General Fund Entries [AICPA Adapted] DeKalb City...Ch. 17 - Prob. 17.18.37PCh. 17 - Prob. 17.18.38PCh. 17 - Prob. 17.18.39PCh. 17 - Prob. 17.19PCh. 17 - Prob. 17.20P
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