Advanced Financial Accounting
Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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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
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Explanation of Solution

    EntryDebit $Credit $
    Adjustment entries:
    1. Allowance for uncollectible - Delinquent2,200
    Fund balance − Unreserved2,200
    (Reduction in estimated losses on prior year’s taxes to amount of receivables )
    2. Revenue27,000
    Donated land27,000
    (Elimination of beginning balance in government wide financial statements)
    3. Fund balance − Unreserved8,800
    Fund balance reserved for encumbrances 20X08,800
    (Recording of outstanding purchase order at year end)
    Expenditures − 20X08,800
    Other expenditures8,800
    (Reclassify purchases of supplies chargeable to prior year appropriations)
    4. Encumbrances2,100
    Budgetary fund balance − reserved for encumbrances2,100
    (Recording encumbrance for purchase order outstanding at the year end June 30 20X1)
    5. Special assessment bonds payable100,000
    Due to capital project fund100,000
    (Recording of liability to capital projects fund for cash obtained from sale of special assessment bonds)
    6. Revenue21,000
    Tax anticipation notes payable20,000
    Due to water utility fund1,000
    (Recording of tax anticipation notes payable and liability to water utility fund from revenue of scrap sale)
    Closing entries:
    1. Appropriations control348,000
    Estimated revenues control310,000
    2. Budgetary fund balance - Unreserved
    (Budgetary appropriation account closed and fund balance transferred to unreserved)
    Budgetary fund balance − reserved2,100
    Encumbrances2,100
    (Outstanding encumbrances reversed)
    3. Fund balance − Unreserved2,100
    Fund balance − Reserved for encumbrances)2,100
    (Outstanding encumbrances reserved to be exercised in next year)
    4. Revenue306,000
    Fund balance − Unreserved31,200
    Other expenses271,200
    Expenditures − Building addition constructed50,000
    Expenditures − Serial bonds paid16,000
    (Record of payment of expenses using revenue)
    5. Fund balance − Reserved for encumbrances8,800
    Expenditures8,800
    (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
Check Mark

Explanation of Solution

    EntryDebit $Credit $
    Adjusting Entries:
    Capital project fund:
    Due from general fund100,000
    Other financing sources − bond issue100,000
    (Record receivable due from general fund for proceeds of sale of bonds)
    Water utility fund:
    Due from general fund1,000
    Revenue − Miscellaneous1,000
    (Recording of receivable from general fund for cash obtained from sale of scrap)

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Chapter 18 Solutions

Advanced Financial Accounting

Ch. 18 - Prob. 18.11QCh. 18 - Prob. 18.12QCh. 18 - Prob. 18.13QCh. 18 - GASB 34 required a budgetary comparison schedule...Ch. 18 - Prob. 18.15QCh. 18 - Prob. 18.1CCh. 18 - Capital Projects, Debt Service, and Internal...Ch. 18 - Prob. 18.1.1ECh. 18 - Prob. 18.1.2ECh. 18 - Prob. 18.1.3ECh. 18 - Prob. 18.1.4ECh. 18 - Prob. 18.1.5ECh. 18 - Prob. 18.1.6ECh. 18 - Prob. 18.1.7ECh. 18 - Prob. 18.1.8ECh. 18 - Prob. 18.1.9ECh. 18 - Prob. 18.1.10ECh. 18 - Prob. 18.1.11ECh. 18 - Prob. 18.1.12ECh. 18 - Multiple-Choice Items on Governmental Funds [AICPA...Ch. 18 - Prob. 18.2.2ECh. 18 - Prob. 18.2.3ECh. 18 - Multiple-Choice Items on Governmental Funds [AICPA...Ch. 18 - Prob. 18.2.5ECh. 18 - Multiple-Choice Items on Governmental Funds [AICPA...Ch. 18 - Multiple-Choice Items on Proprietary Funds [AICPA...Ch. 18 - Prob. 18.3.2ECh. 18 - Prob. 18.3.3ECh. 18 - Prob. 18.3.4ECh. 18 - Prob. 18.3.5ECh. 18 - Prob. 18.3.6ECh. 18 - Prob. 18.3.7ECh. 18 - Prob. 18.3.8ECh. 18 - Prob. 18.3.9ECh. 18 - Prob. 18.4.1ECh. 18 - Prob. 18.4.2ECh. 18 - Prob. 18.4.3ECh. 18 - Prob. 18.4.4ECh. 18 - Prob. 18.4.5ECh. 18 - Prob. 18.4.6ECh. 18 - Prob. 18.4.7ECh. 18 - Prob. 18.4.8ECh. 18 - Prob. 18.5.1ECh. 18 - Prob. 18.5.2ECh. 18 - Prob. 18.5.3ECh. 18 - Prob. 18.5.4ECh. 18 - Prob. 18.5.5ECh. 18 - Prob. 18.5.6ECh. 18 - Prob. 18.5.7ECh. 18 - Prob. 18.5.8ECh. 18 - Capital Projects Fund Entries and Statements The...Ch. 18 - Debt Service Fund Entries and Statements The City...Ch. 18 - Enterprise Fund Entries and Statements Augusta has...Ch. 18 - Interfund Transfers and Transactions During 20X8,...Ch. 18 - Internal Service Fund Entries and Statements...Ch. 18 - Prob. 18.11.1ECh. 18 - Prob. 18.11.2ECh. 18 - Prob. 18.11.3ECh. 18 - Prob. 18.11.4ECh. 18 - Prob. 18.11.5ECh. 18 - Prob. 18.11.6ECh. 18 - Prob. 18.11.7ECh. 18 - Prob. 18.11.8ECh. 18 - Prob. 18.11.9ECh. 18 - Prob. 18.11.10ECh. 18 - Adjusting Entries for General Fund [AICPA Adapted]...Ch. 18 - Entries for Funds [AICPA Adapted] Olivia Village...Ch. 18 - Prob. 18.14PCh. 18 - Prob. 18.15PCh. 18 - Prob. 18.16PCh. 18 - Matching Items Involving Various Funds The...Ch. 18 - Prob. 18.18.1PCh. 18 - Prob. 18.18.2PCh. 18 - Prob. 18.18.3PCh. 18 - Prob. 18.18.4PCh. 18 - Prob. 18.18.5PCh. 18 - Prob. 18.18.6PCh. 18 - Prob. 18.18.7PCh. 18 - Prob. 18.18.8PCh. 18 - Prob. 18.18.9PCh. 18 - Prob. 18.18.10PCh. 18 - Matching Items Involving the Statement of Cash...Ch. 18 - Prob. 18.20PCh. 18 - Matching Items on Fund Transactions [AICPA...Ch. 18 - Major Fund Tests The City of Somerset has the...Ch. 18 - Prob. 18.23PCh. 18 - Prob. 18.24.1PCh. 18 - Prob. 18.24.2PCh. 18 - Prob. 18.24.3PCh. 18 - Prob. 18.24.4PCh. 18 - Prob. 18.24.5PCh. 18 - Prob. 18.24.6PCh. 18 - Prob. 18.24.7PCh. 18 - Prob. 18.24.8PCh. 18 - Prob. 18.24.9PCh. 18 - Prob. 18.24.10PCh. 18 - Prob. 18.24.11PCh. 18 - Prob. 18.24.12PCh. 18 - Prob. 18.24.13PCh. 18 - Prob. 18.24.14PCh. 18 - Prob. 18.24.15PCh. 18 - Prob. 18.25PCh. 18 - Prob. 18.26P
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