A Government University has RO 15000 cash on hand in an appropriated fund. The University signs a purchase order for RO 7000 to purchase new projectors and systems deliverable in three months. The purpose of writing encumbrance in the ledger is:

A Government University has RO 15000 cash on hand in an appropriated fund. The University signs a purchase order for RO 7000 to purchase new projectors and systems deliverable in three months. The purpose of writing encumbrance in the ledger is:

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 78IIP

See similar textbooks

Similar questions

Johnson City purchased a fleet of snow removal trucks on April 1, 2021. The trucks had a cost of $20,000 with an estimated useful life of five years, and they were purchased by the general fund using cash. Address the following two questions in your written response : 1. What amount of expenditures would the governmental funds report for this transaction in fiscal year ended December 31, 2021? 2. If these trucks had been purchased by an enterprise fund instead of the general fund, what amount of expense would be associated with the trucks for fiscal year ended December 31, 2021?
The City of Townsend’s city council authorized the establishment of an internal service fund to provide human resource services to city departments.The following transactions took place in the inaugural month of Townsend’s Human Resource internal service fund: The General Fund transferred $100,000 to cover initial expenses. The transfer is not expected to be repaid. The Human Resources Fund entered into a 2-year computer lease with an initial $5,000 payment. The present value of the remaining payments is $82,218. Salaries and wages paid to employees totaled $15,000. Office supplies were purchased on account for $2,500. Billings totaling $3,000 were received from the enterprise fund for utility charges. Billings to other departments for services provided to them were as follows: General Fund $ 16,000 Special Revenue Fund 4,700 Closing entries were prepared. Required a-1. Assume all expenses at the government-wide level are charged to the General…
The City of Meringen operates a central garage through an internal service fund to provide garage space and repairs for all city-owned and operated vehicles. The central garage fund was established by a contribution of $200,000 from the general fund, when the building was acquired several years ago. The postclosing trail balance at June 30, 2014, was as follows: Debit Credit Cash $ 150,000 Due from general fund $ 20,000 Inventory of materials and supplies $ 80,000 Land $ 60,000 Building $ 200,000 Accumulated depreciation-building $ 10,000 Machinery and equipment $ 56,000 Accumulated depreciation-machinery $ 12,000 and equipment $ 38,000 Vouchers payable $ 200,000 Contribution from general fund $ 306,000 Net position $…
1. On July 1, Gilbert County bought computer equipment for use in the administrative offices of the County. The equipment has an estimated useful life of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal year-end. Assuming that the County maintains its books and records in a manner that facilitates the preparation of fund financial statements, the $70,000 cost of this equipment would require which of the following entries? a. Debit Expenditures $70,000; Credit Cash $70,000. b. Debit Equipment $70,000; Credit Cash $70,000. c. Debit Expenses $70,000; Credit Cash $70,000. d. No entry in the City s governmental funds. 2. On July 1, Gilbert County bought computer equipment for use in the administrative offices of the County. The equipment has an estimated useful life of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal year-end. Assuming that the County maintains its books and records in a manner that facilitates the preparation of government-wide…
The city of Sandwhich purchased a swimming pool from a private operator as of April 1, 2020 for $400,000, of which $200,000 was provided by a one-time contribution from the General Fund, and $200,000was provided by a loan from the First National Bank, secured by a note. The loan has an annual interest rate of 6 percent, payable semiannually on October 1 and April 1; principal payments of $100,000are to be made annually, begining on April 1, 2021. The city has a calander year as its fiscal year. During the year ended December 31, 2020, the following transactions occured related to the City of Sandwhich Swimming Pool. 1. The amounts were received from the City General Fund and the Fist National Bank. 2. A loan was provided in the amount of $125,000 from the Water Utility Fund to provide the working capital. 3. The purchase of the pool was recorded. Based on the appraisal, it was decided to allocate $100,000 to the land, $200,000 to imporvements other then buildings ( the pool), and…
The city of Sandwhich purchased a swimming pool from a private operator as of April 1, 2020 for $400,000, of which $200,000 was provided by a one-time contribution from the General Fund, and $200,000was provided by a loan from the First National Bank, secured by a note. The loan has an annual interest rate of 6 percent, payable semiannually on October 1 and April 1; principal payments of $100,000are to be made annually, begining on April 1, 2021. The city has a calander year as its fiscal year. During the year ended December 31, 2020, the following transactions occured related to the City of Sandwhich Swimming Pool. 1. The amounts were received from the City General Fund and the Fist National Bank. 2. A loan was provided in the amount of $125,000 from the Water Utility Fund to provide the working capital. 3. The purchase of the pool was recorded. Based on the appraisal, it was decided to allocate $100,000 to the land, $200,000 to imporvements other then buildings ( the pool), and…
The city of Sandwhich purchased a swimming pool from a private operator as of April 1, 2020 for $400,000, of which $200,000 was provided by a one-time contribution from the General Fund, and $200,000was provided by a loan from the First National Bank, secured by a note. The loan has an annual interest rate of 6 percent, payable semiannually on October 1 and April 1; principal payments of $100,000are to be made annually, begining on April 1, 2021. The city has a calander year as its fiscal year. During the year ended December 31, 2020, the following transactions occured related to the City of Sandwhich Swimming Pool. 1. The amounts were received from the City General Fund and the Fist National Bank. 2. A loan was provided in the amount of $125,000 from the Water Utility Fund to provide the working capital. 3. The purchase of the pool was recorded. Based on the appraisal, it was decided to allocate $100,000 to the land, $200,000 to imporvements other then buildings ( the pool), and…
This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $5,000,000 bond issue, a $500,000 grant, and a $500,000 General Fund transfer. The following transactions occurred during the current year: The General Fund transferred $500,000 to the Senior Center Capital Projects Fund. A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered.) Preliminary planning and engineering costs of $95,000 were vouchered. (This cost had not been encumbered.) A contract was signed with Sunset Construction Company for the major part of the project on a bid of $4,950,000. The $5,000,000 bonds were issued at par. Temporary investments were purchased at a cost of $3,500,000. A payable was recorded for a $49,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.) An invoice in the amount of $1,500,000 was…
The Town of Weston has a Water Utility fund with the following trial balance as of July 1, 2019 the first day of the fiscal year. Debits: Cash $250,000; Customer Accounts Receivable $200,000;Material and Supplies $120,000; Restricted Assets $250,000; Utility Plant in Service $7,000,000; Construction Work in Progress $180,000; Total $8,000,000 Credit: Allowance for Uncollectible Accounts $30,000; Accumulated depreciation - Utility Plant $2,600,000; Account Payable $120,000; Accrued Expenses Payable $75,000; Revenue Bonds Payable $3,600,000; Net Position $1,575,000; Total $8,000,000 During the year eded June 30, 2020, the following transactions and events occured in the Town of Weston Water Utility Fund. 1. Accured expenses at July 1, were paid in cash. 2. Billings to nongovernmental customers for water usage fir the year amounted to $1,380,000; billings to the General Fund amounted to $96,000. 3. Liabilities for the following were recorded during the year materials and supplies…
The Town of Weston has a Water Utility fund with the following trial balance as of July 1, 2019 the first day of the fiscal year. Debits: Cash $250,000; Customer Accounts Receivable $200,000;Material and Supplies $120,000; Restricted Assets $250,000; Utility Plant in Service $7,000,000; Construction Work in Progress $180,000; Total $8,000,000 Credit: Allowance for Uncollectible Accounts $30,000; Accumulated depreciation - Utility Plant $2,600,000; Account Payable $120,000; Accrued Expenses Payable $75,000; Revenue Bonds Payable $3,600,000; Net Position $1,575,000; Total $8,000,000 During the year eded June 30, 2020, the following transactions and events occured in the Town of Weston Water Utility Fund. 1. Accured expenses at July 1, were paid in cash. 2. Billings to nongovernmental customers for water usage fir the year amounted to $1,380,000; billings to the General Fund amounted to $96,000. 3. Liabilities for the following were recorded during the year materials and supplies…
Prepare journal entries for a local government to record the following transactions, first for fund financial statements and then for government-wide financial statements. The government sells $900,000 in bonds at face value to finance construction of a warehouse. A $1.1 million contract is signed for construction of the warehouse. The commitment is required, if allowed. A $130,000 transfer of unrestricted funds was made for the eventual payment of the debt in (a). Equipment for the fire department is received with a cost of $12,000. When it was ordered, an anticipated cost of $11,800 had been recorded. Supplies to be used in the schools are bought for $2,000 cash. The consumption method is used. A state grant of $90,000 is awarded to supplement police salaries. The money will be paid to reimburse the government after the supplement payments have been made to the police officers. Property tax assessments are mailed to citizens of the government. The total assessment is $600,000,…
The government makes appropriations of RO 150,000 to Muscat School for the month of January 2019. During the month the following transactions occurred:Salary paid RO 35,000Purchase orders were placed for office supplies RO 49,000Office supplies were received with a voucher for RO 45,000An amount of RO 15,000 was transferred to Debt service fund.The unreserved fund balance at the end of the period is: