Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Chapter 3, Problem 23EP
During July, the first month of the fiscal year, the Town of Willingdon issued the following purchase orders and contracts (see Problem 3–22):
Required
- a. Show the general
journal entry to record the issuance of the purchase orders and contracts. Show entries in subsidiary ledger accounts as well as general ledger accounts. - b. Explain why state and local governments generally record the estimated amounts of purchase orders and contracts in the accounts of budgeted governmental funds, whereas business entities generally do not prepare formal entries for purchase orders.
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The transactions that follow relate to the Danville County Comptroller’s Department over a two-year period.
Year 1• The county appropriated $12,000 for employee education and training.• The department signed contracts with outside consultants to conduct accounting and auditing workshops. The total cost was $10,000.• The consultants conducted the workshops and were paid $10,000.• The department ordered books and training materials, which it estimated would cost $1,800. As of year-end, the materials had not been received.
Year 2• The county appropriated $13,500 for employee education and training.• The department received and paid for the books and training materials that it ordered the previous year. Actual cost was only $1,700. The county’s accounting policies require that the books and training materials be charged as an expenditure when they are received (as opposed to being…
During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city:
General Government
$
172,200
Public Safety
310,000
Public Works
232,400
Culture and Recreation
189,700
Health and Welfare
176,100
Miscellaneous
25,400
Total
$
1,105,800
All goods ordered during the year were received at the following actual costs:
General Government
$
167,800
Public Safety
309,700
Public Works
234,800
Culture and Recreation
189,700
Health and Welfare
179,300
Miscellaneous
27,200
Total
$
1,108,500
Required
a.&b. Prepare journal entries in the General Fund general journal to record the issuance of purchase orders and to record the receipt of and payment for goods during the year. Also show subsidiary detail for the Encumbrances and Expenditures ledgers. (If no
During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city:
General Government
$
171,200
Public Safety
309,000
Public Works
231,400
Culture and Recreation
188,700
Health and Welfare
175,100
Miscellaneous
25,300
Total
$
1,100,700
All goods ordered during the year were received at the following actual costs:
General Government
$
166,800
Public Safety
308,700
Public Works
233,800
Culture and Recreation
188,700
Health and Welfare
178,300
Miscellaneous
27,000
Total
$
1,103,300
Required
a.&b. Prepare journal entries in the General Fund general journal to record the issuance of purchase orders and to record the receipt of and payment for goods during the year. Also show subsidiary detail for the Encumbrances and Expenditures ledgers. (If no entry is required for a…
Chapter 3 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 3 - Prob. 1QCh. 3 - Discuss the different ways in which depreciation...Ch. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - Explain the essential differences between revenues...Ch. 3 - Prob. 6QCh. 3 - How do Budgetary Fund Balance and Fund Balances...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - The city manager of University City is finalizing...Ch. 3 - Prob. 16.1EPCh. 3 - Prob. 16.2EPCh. 3 - Which of the following accounts neither increases...Ch. 3 - Prob. 16.4EPCh. 3 - Which of the following statements is true for...Ch. 3 - An internal allocation of funds on a periodic...Ch. 3 - Prob. 16.7EPCh. 3 - Prob. 16.8EPCh. 3 - Before placing a purchase order, a department...Ch. 3 - Prob. 16.10EPCh. 3 - Which of the following is correct concerning the...Ch. 3 - Prob. 16.12EPCh. 3 - Prob. 16.13EPCh. 3 - Prob. 16.14EPCh. 3 - Supplies ordered by the Public Works function of...Ch. 3 - Prob. 17EPCh. 3 - Prob. 18EPCh. 3 - Prob. 19EPCh. 3 - The following information is provided about the...Ch. 3 - On February 15, the Town of Evergreen police...Ch. 3 - The Town of Willingdon adopted the following...Ch. 3 - During July, the first month of the fiscal year,...Ch. 3 - The Town of Bedford Falls approved a General Fund...Ch. 3 - The printout of the Revenues and Appropriations...Ch. 3 - Review the computer-generated budgetary comparison...Ch. 3 - Prob. 27EPCh. 3 - Greenville has provided the following information...
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