Chapter 17 – Accounting and Reporting for the Federal Government
17-16
Ch. 17, Solutions, Exercise 17-17 (Cont’d)
SAVE OUR RESOURCES COMMISSION
Debits Credits
17–18
a. SAVE OUR RESOURCES COMMISSION
STATEMENT OF BUDGETARY RESOURCES
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Chapter 17 – Accounting and Reporting for the Federal Government
17-17
Ch. 17, Solutions, Exercise 17-18 (Cont’d)
Note A: New obligations and upward adjustments is the expended authority of
current year of $4,500,000 plus $310,000 for undelivered orders.
Chapter 17 – Accounting and Reporting for the Federal Government
17-18
Ch. 17, Solutions, Exercise 17-18 (Cont’d)
c. SAVE OUR RESOURCES COMMISSION
BALANCE SHEET
17-19
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Ch. 17, Solutions (Cont’d)
17-19.
RURAL ASSISTANCE AGENCY
STATEMENT OF NET COST
FOR THE YEAR ENDED SEPTEMBER 30, 2020
FOOD BANK
COSTS
$ 9,632,800
LESS: EARNED REVENUE
2,611,900
NET COST
7,020,900
HOUSING SERVICES
COSTS
7,438,500
LESS: EARNED REVENUE
1,237,400
NET COST
6,201,100
CREDIT COUNSELING
COSTS
2,391,000
LESS: EARNED REVENUE
87,000
NET COST
2,304,000
TOTAL
COSTS
19,462,300
LESS: EARNED REVENUE
3,936,300
NET COST OF OPERATIONS
$15,526,000
General Problem Information: Statement of net costs
Learning Objective: 17-5
Topic: Dual-track Accounting System
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN: Reporting
Level of Difficulty: Medium
Chapter 17 – Accounting and Reporting for the Federal Government
17-20
Ch. 17, Solutions (Cont’d)
17-20. FEDERAL ANTIQUITIES ADMINISTRATION
STATEMENT OF BUDGETARY RESOURCES
FOR THE 11 MONTHS ENDED AUGUST 31, 2020
BUDGETARY RESOURCES:
BUDGET AUTHORITY (Note A):
APPROPRIATIONS RECEIVED (Note A)
$4,894,855
TOTAL BUDGETARY RESOURCES
$4,894,855
STATUS OF BUDGETARY RESOURCES:
NEW OBLIGATIONS & UPWARD ADJUSTMENTS (Note B)
$4,144,855
UNOBLIGATED BALANCES (Note C)
750,000
TOTAL STATUS OF BUDGETARY RESOURCES
$4,894,855
CHANGE IN OBLIGATED BALANCE:
UNPAID OBLIGATIONS, BEGINNING OF THE PERIOD
$ 1,210,210
NEW OBLIGATIONS & UPWARD ADJUSTMENTS (Note B)
4,144,855
OUTLAYS (Note D)
(4,690,934)
UNPAID OBLIGATIONS, END OF PERIOD (Note E)
$ 664,131
Note A: Total budgetary resources are given by the balance of Other
Appropriations Realized of $4,894,855.
Note B: Expended authority of current year of $3,480,724 plus $664,131
obligated budgetary authority for undelivered orders at 8/31/20.
Chapter 17 – Accounting and Reporting for the Federal Government
17-21
Ch. 17, Solutions (Cont’d)
17-21. a. FLOOD CONTROL COMMISSION
1. BUDGETARY
OTHER APPROPRIATIONS
2. BUDGETARY
3. BUDGETARY
4. BUDGETARY
5. BUDGETARY
Chapter 17 – Accounting and Reporting for the Federal Government
17-22
Ch. 17, Solutions, Exercise 17-21 (Cont’d)
FLOOD CONTROL COMMISSION
6. BUDGETARY
UNDELIVERED ORDERS⎯2020 395,000
EXPENDED AUTHORITY⎯2020 395,000
7. BUDGETARY
Chapter 17 – Accounting and Reporting for the Federal Government
17-23
Ch. 17, Solutions, Exercise 17-21 (Cont’d)
8. PROPRIETARY
ACCOUNTS PAYABLE 189,000
9. BUDGETARY
UNDELIVERED ORDERS⎯2020 40,000
Chapter 17 – Accounting and Reporting for the Federal Government
17-24
Ch. 17, Solutions, Exercise 17-21 (Cont’d)
10. BUDGETARY
EXPENDED AUTHORITY⎯2020 788,000
OTHER APPROP. REALIZED⎯2020 788,000
Chapter 17 – Accounting and Reporting for the Federal Government
17-25
Ch. 17, Solutions, Exercise 17-21 (Cont’d)
b. FLOOD CONTROL COMMISSION
BALANCE SHEET
Chapter 17 – Accounting and Reporting for the Federal Government
17-26
Ch. 17, Solutions, Exercise 17-21 (Cont’d)
c. FLOOD CONTROL COMMISSION
STATEMENT OF CHANGES IN NET POSITION
FOR THE MONTH ENDED OCTOBER 31, 2020
CUMULATIVE
RESULTS OF
OPERATIONS
UNEXPENDED
APPROPRIATIONS
BEGINNING BALANCES
$ 0
$ 0
BUDGETARY FINANCING SOURCES:
APPROPRIATIONS RECEIVED
7,000,000
APPROPRIATIONS USED
788,000
(788,000)
TOTAL FINANCING SOURCES
788,000
6,212,000
NET COST OF OPERATIONS (Note A)
(495,500)
_________
ENDING BALANCES
$ 292,500
$6,212,000
Note A: Operating/program expenses of $493,000 + depreciation and amortization
of $2,500.
Chapter 17 – Accounting and Reporting for the Federal Government
17-27
Ch. 17, Solutions, Exercise 17-21 (Cont’d)
d. FLOOD CONTROL COMMISSION
STATEMENT OF BUDGETARY RESOURCES
FOR MONTH ENDED OCTOBER 31, 2020
$7,000,000
$ 970,000
6,030,000
$7,000,000
970,000
(542,000)
$ 428,000
Note A: Total budgetary resources are the total appropriations for the year, or
$7,000,000.
Note B: New obligations and upward adjustments equals expended budgetary
authority of $788,000 (see Entry 10) plus the remaining balance of
Chapter 17 – Accounting and Reporting for the Federal Government
17-28
Ch. 17, Solutions, Exercise 17-21 (Cont’d)
17-22.
a. FINANCIAL CAPABILITY
(1) INDIVIDUAL INCOME TAXES/TOTAL REVENUES: 77.8%
(1) NON-DEDICATED COLLECTIONS FUNDS/TOTAL REVENUES: −6.78
(3) CAPITAL ASSET CONDITION ($1,174.6 / $1,965.8)**: 59.8%
* Since it is difficult to identify current portions of long-term debt, only
somewhat identifiable current liabilities were used in the calculation. Just
Accounts Payable was used in the first calculation and Accounts Payable
Chapter 17 – Accounting and Reporting for the Federal Government
17-29
Ch. 17, Solutions, Exercise 17-22 (Cont’d)
The capital asset condition ratio is also a positive measure. At 59.8% it
indicates that there is sufficient life remaining in capital assets.