
Introduction: Government accounting means
General fund: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.
Funds: It is the fiscal or accounting entities in the government unit. It is set of accounts with self-balancing to record the transactions.
The

Explanation of Solution
The journal entries in all the funds affected for the year ended December 31, 20X8 is as follows:
Case 1:
Date | Particulars | Debit ($) | Credit ($) |
October 31, 20X8 | Cash | 800,000 | |
To Other financing sources-Bond issued | 800,000 | ||
(Recording entry for issuing $800,000 bonds) | |||
October 31, 20X8 | Encumbrances | 750,000 | |
To Budgetary fund balance- reserved | 750,000 | ||
(Recording entry for acceptance of contractor's bid) | |||
December 31, 20X8 | Budgetary fund balance- reserved | 250,000 | |
To Encumbrances (750000*1/3) | 250,000 | ||
(Recording entry for completion of one-third of the contract) | |||
December 31, 20X8 | Expenditure | 246,000 | |
To Contracts payable | 246,000 | ||
(Recording entry for actual construction cost incurred) |
Case 2:
Date | Particulars | Debit ($) | Credit ($) |
December 31, 20X8 | Estimated revenue | 112,000 | |
To Appropriations | 108,000 | ||
Budgetary fund balance-unreserved | 4000 | ||
(Recording entry for budgeted revenue and appropriations) | |||
December 31, 20X8 | Cash | 109,000 | |
To revenue account | 109,000 | ||
(Recording entry for collection of hotel room taxes) | |||
December 31, 20X8 | Expenditures (81000+22000) | 103,000 | |
To voucher payable | 103,000 | ||
(Recording entry for expense incurred for general promotion and purchase of motor vehicle) | |||
December 31, 20X8 | Vouchers payable | 103,000 | |
To cash | 103,000 | ||
(Recording entry for payment of expenses) |
Case 3:
Date | Particulars | Debit ($) | Credit ($) |
December 31, 20X8 | Transfer out-Debt service fund | 313,500 | |
To cash | 313,500 | ||
(Recording entry for transfer of resources from general fund to debt service fund) | |||
December 31, 20X8 | Cash | 313,500 | |
To Other financing sources-Transfer in general fund | 313,500 | ||
(Recording entry for closing nominal accounts) | |||
December 31, 20X8 | Expenditure-Interest | 13,500 | |
To Interest payable | 13,500 | ||
(Recording entry for interest on bonds due) | |||
December 31, 20X8 | Expenditure-bond payable | 300,000 | |
To bond payable | 300,000 | ||
(Recording entry for bonds due) | |||
December 31, 20X8 | Interest payable | 13,500 | |
Bond payable | 300,000 | ||
To cash | 313,500 | ||
(Recording entry for payment of bonds and its interest) |
Case 4:
Date | Particulars | Debit ($) | Credit ($) |
December 31, 20X8 | Budgetary fund balance- reserved | 83,000 | |
To Encumbrances | 83,000 | ||
(Recording entry to close outstanding encumbrances) | |||
December 31, 20X8 | Fund balance-unreserved | 83,000 | |
To Fund balance- Reserved for encumbrances | 83,000 | ||
(Recording entry to close outstanding encumbrances) |
Case 5:
Date | Particulars | Debit ($) | Credit ($) |
December 31, 20X8 | Fund balance-reserved for inventories | 3000 | |
To Inventories (45000-42000) | 3000 | ||
(Recording entry for adjustment of inventories at the end of the year) |
Want to see more full solutions like this?
Chapter 18 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
- Hy expert provide answer with calculationarrow_forwardDuring September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.arrow_forwardBluesy Electronics recorded the following financial data: Net Sales $720,500 Average Inventory at Cost = $80,200 Gross Margin Percentage = 42% Calculate the GMROI.arrow_forward
- Need help this question solutionarrow_forwardXYZ Company has a gross profit margin of 0.30, an operating profit margin of 18%, a total asset turnover ratio of 2.0x, and cost of goods sold of $700,000. The company's tax rate is 35%, and it has no debt. Calculate XYZ Company's Return on Assets (ROA).arrow_forwardMON Pools builds custom swimming pools. MON budgets that they will build 16 pools during the month of June at a price of $22,750 per pool. The actual pools built by MON during June were 13 pools at a price of $23,420 per pool. What is the Flexible Budget Variance for June?arrow_forward
- Anderson Corp. pays its employees every Friday for work performed through that Friday. Anderson employees work Monday through Friday and do not work on weekends. The gross payroll for Anderson is $12,500 each week. Anderson will pay its employees $12,500 on Friday, May 8th. This payroll is for wages earned Monday, May 4th through Friday, May 8th. How much of the $12,500 paid on May 8th should be expensed in May?arrow_forwardPlease solve this problem general accounting question don't use ai solutionarrow_forwardWhat is the book value of its liability? Accountingarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





