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 26EP
Review the computer-generated budgetary comparison report presented below for the Lincoln City Culture and Recreation Department as of July 1 of its fiscal year ending December 31, and respond to the questions that follow.
Required
- a. What is the likely reason there are no outstanding encumbrances for the Personnel Services, Conferences and Training, and Utilities accounts?
- b. Does it appear that the Culture and Recreation Department may overexpend its appropriation for any accounts before the end of the fiscal year? If so, which accounts may run short?
- c. Does it appear that the Culture and Recreation Department may underexpend any of its appropriations for the fiscal year? If so, which accounts may have excessive spending authority?
- d. What factors may explain the expenditure patterns observed in parts b and c?
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Which of the following statements is true concerning the recording of a budget? Choose the correct.a. At the beginning of the year, debit Appropriations.b. A debit to the Budgetary Fund Balance account indicates an expected surplus.c. At the beginning of the year, debit Estimated Revenues.d. At the end of the year, credit Appropriations.
Which of the following statements correctly describes rela-tionships within the master budget? (More than one answer
may be correct.)a. The production budgets are based in large part on thesales forecast.b. In many elements of the master budget, the amountsbudgeted for the upcoming quarter are reviewed andsubdivided into monthly budget figures.
c. The operating budgets affect the budgeted income state-ment, the cash budget, and the budgeted balance sheet.
d. The capital expenditures budget affects the direct mate-rials budget.
The General Fund for Nisland has the following budget for the current year:
Estimated Revenues$4,500,000 Appropriations$5,200,000 Estimated other financing sources$800,000 Estimated other financing uses$75,000
During the year, the actual results were:
Revenues$4,300,000 Expenditures$5,150,000 Other financing sources$850,000 Other financing uses$70,000
Required: Prepare the Closing Entries for Nisland.
Does it need a record for budgetary / encumbrances first and then the actual cost?
DO NOT GIVE SOLUTION IN IMAGE FORMAT
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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