Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
P18-13 (continued)
Fund
Journal Entries
7.
Capital
ENCUMBRANCES
75,000
Projects
BUDGETARY FUND BALANCE – ASSIGNED
Fund
FOR ENCUMBRANCES
75,000
BUDGETARY FUND BALANCE – ASSIGNED
FOR ENCUMBRANCES
75,000
ENCUMBRANCES
75,000
Expenditures
75,000
Contracts Payable
75,000
Contracts Payable
75,000
Cash
75,000
8.
Internal
Inventory of Supplies
1,900
Service
Cash (or Vouchers Payable)
1,900
Fund
9.
General
Cash
393,000
Fund
Taxes Receivable – Current
386,000
Revenue – Licenses and Fees
7,000
Allowance for Uncollectibles – Current
3,800
Revenue – Taxes
3,800
Estimate
$7,800
Actual
(4,000)
Correction
$3,800
10.
Capital
Cash
500,000
Projects
Other Financing Sources – Bond Issue
500,000
Fund
11.
General
BUDGETARY FUND BALANCE – ASSIGNED
Fund
FOR ENCUMBRANCES
15,000
ENCUMBRANCES
15,000
Expenditures
15,000
Cash
15,000
Chapter 18 – Governmental Entities: Special Funds and Government–Wide Financial Statements
P18-18 Questions on Fund Transactions [AICPA Adapted]
1.
$104,500
(Stated in item #3.)
2.
$17,000
(Stated in item #4.)
3.
$125,000
(Item #5 states that $83,000 is assigned for encumbrances. To this
is added the $42,000 reserve for the ending inventory.)
4.
$236,000
(Item #1 states that $600,000 of bond proceeds were received in
the capital project fund, less $364,000 of construction expenditures
in the period.)
5.
$6,000
(Item #2 states that $109,000 tax revenues were received from
which $81,000 and $22,000 was expended.)
6.
$104,500
(Stated in item #3.)
7.
$386,000
(Item #1 states construction expenditures of $364,000 plus item #2
states a motor vehicle purchase of $22,000.)
8.
$100,000
(Item #3 states a reduction in long-term debt principal of
$100,000.)
9.
$181,000
(Item #6 states that $181,000 was used to purchase supplies
during the period.)
10.
$190,000
(Item #6 states encumbrances of $190,000.)
