Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis. The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Preparation of closing entries The Town of Munising reports the following trial balance after all entries have been made for the year: Cash Trial Balance Receivables: Real estate & personal property Intergovernmental Payables Deferred revenues Fund balances: DR CR $174,347 15,480 180,083 $18,319 176,085 Assigned Unassigned 46,440 86,860 Revenues-real estate taxes 580,765 Intergovernmental revenues 115,651 Expenditures-general government 108,694 Expenditures-public safety 65,797 Expenditures-education 394,783 Expenditures-public works 32,899 Expenditures-human services 65,797 Expenditures-debt principal payments 2,580 Expenditures-debt interest payments 860 Other financing sources-proceeds from bonds. 17,200 $1,041,320 $1,041,320 The Town's budget for the year, originally entered into the financial records, was as follows: ESTIMATED REVENUES 678,749 ESTIMATED OTHER FINANCING SOURCES APPROPRIATIONS BUDGETARY FUND BALANCE 17,200 (664,551) 31,398 In addition, the Town issued purchase…

The Village of Dove ruses the purchases method of accounting for its inventories of supplies in the General Fund. GASB standards, however, require that the consumption method be used for the government-wide financial statements. Because its computer system is very limited, the Village uses a periodic inventory system, adjusting inventory balances based on a physical inventory of supplies at year-end. When supplies are received during the year, the Village records expenditures and expenses in the general journals of the General Fund and governmental activities, respectively. The Village’s inventory records showed the following information for the fiscal year ending December 31, 2014: Balance of inventory, December 31, 2013 $132,000 Purchases of inventory during 2014 772,000 Balance of inventory, December 31, 2014 150,000 Required a. Provide the required adjusting entries at the end of 2014, assuming that the…

Record the appropriate journal entries for Sturgis City for the following transactions. The city uses encumbrance accounting and maintains a provision for uncollectible accounts. Note: Each transaction may involve more than one fund. The appropriate fund must be identified to receive credit. The central motor pool billed the General Fund for $33,000 in services. The General Fund previously recorded an encumbrance for the same amount. The city owned landfill purchased two tractors for a total of $40,000. The related invoice was paid. The City entered into a contract with Maker’s Construction to build a civic center for $3 million. The General Fund paid the central motor pool invoice (item 1). The landfill issued $4 million in revenue bonds for renovations. The landfill recorded daily fee receipts of $14,000. Maker’s Construction issued a progress billing for $350,000. The contract provides for a 10% retained percentage. The landfill sold an old tractor for $5,000…

Answer 2

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Answer 6

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

Answer 7

Chapter 18, Problem 18.14P

a

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjustment and closing entries for the general fund for the year ended June 30 20X1

Answer 8

a

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjustment entries:
1. Allowance for uncollectible - Delinquent	2,200
Fund balance − Unreserved		2,200
(Reduction in estimated losses on prior year’s taxes to amount of receivables )

2. Revenue	27,000
Donated land		27,000
(Elimination of beginning balance in government wide financial statements)

3. Fund balance − Unreserved	8,800
Fund balance reserved for encumbrances 20X0		8,800
(Recording of outstanding purchase order at year end)

Expenditures − 20X0	8,800
Other expenditures		8,800
(Reclassify purchases of supplies chargeable to prior year appropriations)

4. Encumbrances	2,100
Budgetary fund balance − reserved for encumbrances		2,100
(Recording encumbrance for purchase order outstanding at the year end June 30 20X1)

5. Special assessment bonds payable	100,000
Due to capital project fund		100,000
(Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)

6. Revenue	21,000
Tax anticipation notes payable		20,000
Due to water utility fund		1,000
(Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)

Closing entries:
1. Appropriations control	348,000
Estimated revenues control		310,000
2. Budgetary fund balance - Unreserved
(Budgetary appropriation account closed and fund balance transferred to unreserved)

Budgetary fund balance − reserved	2,100
Encumbrances		2,100
(Outstanding encumbrances reversed)

3. Fund balance − Unreserved	2,100
Fund balance − Reserved for encumbrances)		2,100
(Outstanding encumbrances reserved to be exercised in next year)

4. Revenue	306,000
Fund balance − Unreserved	31,200
Other expenses		271,200
Expenditures − Building addition constructed		50,000
Expenditures − Serial bonds paid		16,000
(Record of payment of expenses using revenue)

5. Fund balance − Reserved for encumbrances	8,800
Expenditures		8,800
(Reserved encumbrance recognized when expenditure incurred)

Answer 9

a

Expert Solution

Answer 10

a

Expert Solution

Answer 11

Expert Solution

Answer 12

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)

Answer 13

b

To determine

Introduction:

Government funds: It is the financial resources of government established by the government for money collected for a government project. These funds are created to provide an extra level of transparency and accountability to taxpayers that their tax dollars are used for the appropriate purpose. Governmental funds use the modified accrual basis of accounting, and proprietary and fiduciary funds use accrual basis.

The formal adjusting entries foe any funds involved, using given information.

Answer 14

b

Expert Solution

Explanation of Solution

Entry	Debit $	Credit $
Adjusting Entries:
Capital project fund:
Due from general fund	100,000
Other financing sources − bond issue		100,000
(Record receivable due from general fund for proceeds of sale of bonds)

Water utility fund:
Due from general fund	1,000
Revenue − Miscellaneous		1,000
(Recording of receivable from general fund for cash obtained from sale of scrap)