a.
Journalize the given transactions in the accounts of FC Commission.
a.

Explanation of Solution
Journalize the given transactions in the budgetary and proprietary accounts of FC Commission.
1.
Entry for appropriation realized for operating expenses:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Other Appropriations Realized-2017 | 7,000,000 | ||
Unappropriated Authority-2017 | 7,000,000 | ||
Proprietary: | |||
Fund Balance with Treasury-2017 | 7,000,000 | ||
Unexpended Appropriations | 7,000,000 |
Table (1)
2.
Entry for schedule of apportionments:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Unappropriated Authority-2017 | 7,000,000 | ||
Apportionments-2017 | 7,000,000 |
Table (2)
3.
Entry for allotments for first month’s operations:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Apportionments-2017 | 1,000,000 | ||
Allotments-2017 | 1,000,000 |
Table (3)
4.
Entry for commitments:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Allotments-2017 | 970,000 | ||
Undelivered Orders-2017 | 970,000 |
Table (4)
5.
Entry for payment of payroll:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Undelivered Orders-2017 | 170,000 | ||
Expended Authority-2017 | 170,000 | ||
Proprietary: | |||
Operating/Program Expenses | 170,000 | ||
Disbursements in Transit-2017 | 170,000 | ||
Disbursements in Transit-2017 | 170,000 | ||
Fund Balance with Treasury-2017 | 170,000 | ||
Unexpended Appropriations-2017 | 170,000 | ||
Appropriations Used | 170,000 |
Table (5)
6.
Entry for payment approved invoices:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Undelivered Orders-2017 | 395,000 | ||
Expended Authority-2017 | 395,000 | ||
Proprietary: | |||
Furniture and Equipment | 180,000 | ||
Operating Materials and Supplies | 175,000 | ||
Operating/Program Expenses | 40,000 | ||
Accounts Payable | 395,000 | ||
Unexpended Appropriations-2017 | 395,000 | ||
Appropriations Used | 395,000 |
Table (6)
7.
Entry for payroll liability:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Undelivered Orders-2017 | 183,000 | ||
Expended Authority-2017 | 183,000 | ||
Proprietary: | |||
Operating/Program Expenses | 183,000 | ||
Accrued Funded Payroll and Benefits | 183,000 | ||
Unexpended Appropriations-2017 | 183,000 | ||
Appropriations Used | 183,000 |
Table (7)
8.
Entry for payment of accounts payables:
Debits ($) | Credits ($) | ||
Proprietary: | |||
Accounts Payable | 189,000 | ||
Accrued Funded Payroll and Benefits | 183,000 | ||
Disbursements in Transit-2017 | 372,000 | ||
Disbursements in Transit-2017 | 372,000 | ||
Fund Balance with Treasury-2017 | 372,000 |
Table (8)
9.
Entry to record accruals:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Undelivered Orders-2017 | 40,000 | ||
Expended Authority-2017 | 40,000 | ||
Proprietary: | |||
Operating/Program Expenses | 40,000 | ||
Accrued Funded Payroll and Benefits | 30,000 | ||
Accounts Payable | 10,000 | ||
Operating/Program Expenses | 60,000 | ||
Operating Materials and Supplies | 60,000 | ||
2,500 | |||
2,500 | |||
Unexpended Appropriations-2017 | 40,000 | ||
Appropriations Used | 40,000 |
Table (9)
10.
Record closing entries:
Debits ($) | Credits ($) | ||
Budgetary: | |||
Expended Authority-2017 | 788,000 | ||
Other Appropriations Realized-2017 | 788,000 | ||
Proprietary: | |||
Cumulative Results of Operations | 495,500 | ||
Operating/Program Expenses | 493,000 | ||
Depreciation and Amortization | 2,500 | ||
Appropriations Used | 788,000 | ||
Cumulative Results of Operations | 788,000 |
Table (10)
b.
Prepare
b.

Explanation of Solution
Balance sheet: This is the financial statement that reports the financial position of the federal agency or the governmental entity, and includes the sections assets, liabilities, and net position. Net position is the net amount of the fund balances of the equity funds that are reported on the balance sheet.
Prepare balance sheet for FC Commission as of October 31, 2017.
FC Commission | |
Balance Sheet | |
As of October 31, 2017 | |
Particulars | Amount ($) |
Assets | |
Intragovernmental: | |
Fund Balance with Treasury-2017 | $6,458,000 |
Governmental: | |
Operating Materials and Supplies | 115,000 |
Furniture and Equipment (Net of accumulated depreciation of $2,500) | 177,500 |
Total assets | $6,750,500 |
Liabilities | |
Governmental liabilities: | |
Accounts payable | $216,000 |
Accrued funded payroll and benefits | 30,000 |
Total liabilities covered by budgetary resources | $246,000 |
Net Position | |
Unexpended appropriations | 6,212,000 |
Cumulative results of operations | 292,500 |
Total net position | 6,504,500 |
Total liabilities and net position | $6,750,500 |
Table (11)
c.
Prepare statement of changes in net position for FC Commission for the month ended October 31, 2017.
c.

Explanation of Solution
Statement of changes in net position: The Statement of Net Position of a federal agency reports the total of unexpended appropriations and cumulative results of operations, as net position. Net position is the net amount of the fund balances of the equity funds that are reported on the balance sheet.
Prepare statement of changes in net position for FC Commission for the month ended October 31, 2017.
FC Commission | ||
Statement of Changes in Net Position | ||
For the Month Ended October 31, 2017 | ||
Cumulative Results of Operations | Unexpended Appropriations | |
Beginning balances | $0 | $0 |
Budgetary funding sources: | ||
Appropriation received | 7,000,000 | |
Appropriations used | 788,000 | (788,000) |
Other financing sources | 0 | 0 |
Total financing sources | 788,000 | 6,212,000 |
Net cost of operations | (495,500) | 0 |
Ending balances | $292,500 | $6,212,000 |
Table (12)
d.
Prepare statement of budgetary resources for FC Commission for the month ended October 31, 2017.
d.

Explanation of Solution
Statement of budgetary resources: The statement that reports the available budgetary resources and status of those budgetary resources at the end of the year is referred to as statement of budgetary resources.
Prepare statement of budgetary resources for FC Commission for the year ended October 31, 2017.
FC Commission | |
Statement of Budgetary Resources | |
For the Month Ended October 31, 2017 | |
Particulars | Amount ($) |
Budgetary Resources: | |
Budget authority | $7,000,000 |
Total Budgetary Resources | $7,000,000 |
Status of Budgetary Resources: | |
New obligations and upward adjustments | $970,000 |
Unobligated balances available | 6,030,000 |
Total Status of Budgetary Resources | $7,000,000 |
Change in Obligated Balance: | |
Unpaid obligations: | |
Unpaid obligations, beginning of period | $0 |
New obligations and upward adjustments | 970,000 |
Outlays | (542,000) |
Obligated balance, end of period | $428,000 |
Table (13)
Notes:
- The sum of undelivered orders–2016 ($182,000) and expended budgetary authority–2020 ($788,000) is the value of new obligations and upward adjustments, $970,000.
- The total budgetary resources of $7,000,000 minus the new obligations of $970,000 is the value of unobligated balances, $6,030,000.
- The sum of undelivered orders ($182,000) and total liabilities ($246,000) is the value of outlays, $428,000.
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