FUNDAMENTALS OF ADVANCED ACCOUNTING >I
6th Edition
ISBN: 9781307007350
Author: Hoyle
Publisher: MCG/CREATE
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Textbook Question
Chapter 11, Problem 40P
The following unadjusted
| General Fund | Debit | Credit | |
| Cash | $ 19,000 | ||
| Taxes Receivable | 202,000 | ||
| Allowance for Uncollectible Taxes | $ 2,000 | ||
| Vouchers Payable | 24,000 | ||
| Due to Debt Service Fund | 10,000 | ||
| Unavailable Revenues | 16,000 | ||
| Encumbrances Outstanding | 9,000 | ||
| Fund Balance—Unassigned | 103,000 | ||
| Revenues | 176,000 | ||
| General Fund | Debit | Credit | |
| Expenditures | 110,000 | ||
| Encumbrances | 9,000 | ||
| Estimated Revenues | 190,000 | ||
| Appropriations | 171,000 | ||
| Budgetary Fund Balance | 19,000 | ||
| Totals | $530,000 | $530,000 | |
| Debt Service Fund | Debit | Credit |
| Cash | $ 8,000 | |
| Investments | 51,000 | |
| Taxes Receivable | 11,000 | |
| Due from General Fund | 10,000 | |
| Fund Balance—Committed | $ 45,000 | |
| Revenues | 20,000 | |
| Other Financing Sources—Operating Transfers In | 90,000 | |
| Expenditures | 75,000 | |
| Totals | $155,000 | $155,000 |
| Capital Projects Fund | Debit | Credit |
| Cash | $ 70,000 | |
| Special Assessments Receivable | 90,000 | |
| Contracts Payable | $ 50,000 | |
| Unavailable Revenues | 90,000 | |
| Encumbrances Outstanding | 16,000 | |
| Fund Balance—Unassigned | –0– | |
| Other Financing Sources | 150,000 | |
| Expenditures | 130,000 | |
| Encumbrances | 16,000 | |
| Estimated Other Financing Sources | 150,000 | |
| Appropriations | 150,000 | |
| Totals | $456,000 | $456,000 |
| Special Revenue Fund | Debit | Credit |
| Cash | $ 14,000 | |
| Taxes Receivable | 41,000 | |
| Inventory of Supplies | 4,000 | |
| Vouchers Payable | $ 25,000 | |
| Grant Revenues Collected in Advance | 3,000 | |
| Fund Balance—Nonspendable | 4,000 | |
| Encumbrances Outstanding | 3,000 | |
| Fund Balance—Unassigned | 19,000 | |
| Revenues | 56,000 | |
| Expenditures | 48,000 | |
| Encumbrances | 3,000 | |
| Estimated Revenues | 75,000 | |
| Appropriations | 60,000 | |
| Budgetary Fund Balance | 15,000 | |
| Totals | $185,000 | $185,000 |
Based on the information presented for each of these governmental funds, answer the following questions:
- a. How much more money can city officials expend or commit from the general fund during the remainder of the current year without amending the budget?
- b. Why does the capital projects fund have no construction or capital asset accounts?
- c. What does the $150,000 Appropriations balance found in the capital projects fund represent?
- d. Several funds have balances for Encumbrances and Encumbrances Outstanding. How will these amounts be accounted for at the end of the Fiscal year?
- e. Why does the Fund Balance—Unassigned account in the capital projects fund have a zero balance?
- f. What are possible explanations for the $150,000 Other Financing Sources balance found in the capital projects fund?
- g. What does the $75,000 balance in the Expenditures account of the debt service fund represent?
- h. What is the purpose of the Special Assessments Receivable found in the capital projects fund?
- i. In the special revenue fund, what is the purpose of the Fund Balance—Nonspendable account?
- j. Why does the debt service fund not have budgetary account balances?
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Chapter 11 Solutions
FUNDAMENTALS OF ADVANCED ACCOUNTING >I
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - What measurement focus is used in fund financial...Ch. 11 - Prob. 6QCh. 11 - Prob. 7QCh. 11 - In applying the current financial resources...Ch. 11 - Prob. 9QCh. 11 - What are the five fund types within the...
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