Concept explainers
a.
Introduction: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.
The journal entry for recoding acquisition of three-year policy.
a.
Explanation of Solution
The journal entry for recording the three-year policy acquired is as follows:
Date | Particulars | Amount ($) | Amount ($) |
September 1, 20X1 | Expenditures | 5400 | |
To vouchers payable account | 5400 | ||
(Being three-year insurance policy acquired) |
b.
Introduction: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.Journal entry is a record for each and every transaction of the business in the books of accounting. It contains correct date, particulars and amount of transaction
The journal entry for recoding the furniture ordered and delivered.
b.
Explanation of Solution
The journal entry for recording the furniture ordered and delivered is as follows:
Date | Particulars | Amount ($) | Amount ($) |
September 17, 20X1 | Encumbrances | 15600 | |
To Budgetary fund balance- reserved for encumbrances | 15600 | ||
(Being furniture ordered for city council meeting room) | |||
October 1,20X6 | Budgetary fund balance- reserved for encumbrances | 15600 | |
To encumbrances | 15600 | ||
(Being furniture delivered and entry is reversed) | |||
October 1,20X6 | Expenditures | 15200 | |
To vouchers payable | 15200 | ||
(Being recording the furniture received at actual cost) |
c.
Introduction: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.Journal entry is a record for each and every transaction of the business in the books of accounting. It contains correct date, particulars and amount of transaction
The journal entry for recoding the supplies acquired and its closing entry.
c.
Explanation of Solution
The journal entry for recording the supplies acquired and its closing entry.is as follows:
Date | Particulars | Amount ($) | Amount ($) |
November 4, 20X1 | Expenditures | 1800 | |
To vouchers payable | 1800 | ||
(Being supplies acquired) | |||
December 31,20X1 | Inventories | 1120 | |
To expenditure | 1120 | ||
(being recording the inventories at the end of the year) | |||
December 31,20X1 | Budgetary fund balance-unreserved | 1120 | |
To Budgetary fund balance-reserved for inventory | 1120 | ||
(Being entry for creating fund balance for inventory) | |||
December 31,20X1 | Budgetary fund balance-unreserved (Note 1) | 21280 | |
To expenditure account | 21280 | ||
(Being entry for closing the expenditure account) |
Note 1: Calculation of total expenditures
Particulars | Amount ($) |
Insurance policy | 5400 |
Furniture | 15200 |
Inventory (supplies) | 600 |
Total expenditure balance | 21200 |
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Chapter 17 Solutions
Advanced Financial Accounting
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College