Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 9E
(Encumbrances) Record the following transactions in the General Fund general ledger accounts. (Analyze the effects of the transactions on all other funds and nonfund accounts.)
- 1. Martinsville ordered supplies for its General Fund departments at an estimated cost of $300,000.
- 2. Martinsville ordered equipment for its General Fund departments at an estimated cost of $490,250.
- 3. Martinsville received half the supplies ordered. The actual cost of $151,000 was paid.
- 4. Martinsville received the equipment it had ordered. The actual cost was $490,250.
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Required:
For each of the summarized transactions for the Village of Sycamore General Fund, prepare the general ledger journal entries.
The budget was formally adopted, providing for estimated revenues of $1,076,000 and appropriations of $1,006,000.
Revenues were received, all in cash, in the amount of $1,019,000.
Purchase orders were issued in the amount of $486,000.
Of the $486,000 in (c), purchase orders were filled in the amount of $479,500; the invoice amount was $478,000 (not yet paid).
Expenditures for payroll not encumbered amounted to $518,000 (not yet paid).
Amounts from (d) and (e) are paid in cash.
Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.
Prepare the journal entries for the following transactions to consolidate financial statements from fund-level statements to government-wide statements.
1....An internal service fund had a loss of $50
2.....An internal service fund had interest expense of $30
A general fund uses the consumption method to record inventories. Beginning
inventories are $10,000, purchases are $600,000, and ending inventories are $12,000.
The general fund records an end-of-year adjusting entry that:
Select one:
A. Debits nonspendable fund balance by $2,000
B. Credits nonspendable fund balance by $12,000
C. Debits unassigned fund balance by $2,000
D. Debits nonspendable fund balance by $12,000
At the beginning of the year, a special revenue fund purchases equipment for $400,000
in cash. The equipment has a 5-year life, straight-line. The fund still holds the
equipment at year-end.
How is this equipment reported in the special revenue fund's operating statement for
the year?
Select one:
A. Expense, $80,000.
B. Expenditure, $400,000.
C. Other financing use, $400,000.
D. Not reported on the operating statement.
Chapter 3 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 3 - Governmental budgeting and budgetary control are...Ch. 3 - Distinguish between the following types of...Ch. 3 - Prob. 3QCh. 3 - What are budgetary control points? How do they...Ch. 3 - Prob. 5QCh. 3 - Why might a local government not prepare and adopt...Ch. 3 - Revenue estimates and appropriations enacted are...Ch. 3 - In business accounting, a single general ledger...Ch. 3 - Illustrations 3-2 and 3-3 show Revenues Subsidiary...Ch. 3 - An interim budgetary comparison statement for a...
Ch. 3 - Prob. 11QCh. 3 - An annual budgetary comparison schedule for a...Ch. 3 - General budgets are most common for which of the...Ch. 3 - Special budgets are best defined as budgets a....Ch. 3 - Prob. 1.3ECh. 3 - Which of the following statements is false? a....Ch. 3 - Which of the following statements is true? a....Ch. 3 - Appropriation requests for the General Fund are...Ch. 3 - Which of the following statements would be true...Ch. 3 - Prob. 2.3ECh. 3 - Which of the following GAAP requirements for...Ch. 3 - Prob. 2.5ECh. 3 - Prob. 3.1ECh. 3 - Which of the following items does a government...Ch. 3 - The budget data presented in a school district...Ch. 3 - Allotments are best defined as a. legislative...Ch. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - (Budgetary EntriesGeneral Ledger) The city of...Ch. 3 - (General LedgerSubsidiary Ledgers Relationship,...Ch. 3 - (General Ledger Entries) Record the following...Ch. 3 - (Encumbrances) Record the following transactions...Ch. 3 - (Operating Budget Preparation) The finance...Ch. 3 - (Budgetary and Other EntriesGeneral and Subsidiary...Ch. 3 - Prob. 3PCh. 3 - (Budgetary Comparison StatementBudgetary Basis...Ch. 3 - (a) Prepare general ledger and subsidiary ledger...Ch. 3 - Using the information from C3-2 and assuming that...
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