Following is a trial balance of the accounts of the Bureau of Bridge Inspection (BOBI), a relatively new unit of the Department of Transportation (DOT), as of October 1, 2022. Bureau of Bridge Inspections Trial Balance October 1, 2022 Budgetary accounts Total actual resources-collected $20,000 Delivered orders-obligations, unpaid $20,000 Totals $20,000 $20,000 Proprietary accounts: Fund balance with Treasury $20,000 Inventory, materials, and supplies 6,000 General property, plant, and equipment 30,000 Disbursements in transit $20,000 Cumulative results of operations 36,000 Totals $56,000 $56,000 BOBI is responsible for overseeing state inspections of bridges constructed with federal funds. It reports program expenses by object of account. BOBI does not use commitment accounting, but does obligate budgetary resources when it enters into contracts or sends purchase orders to buy capital assets and supplies and materials. It also obligates resources for operating leases. The following transactions occurred during the month of October 2022: 1. Congress appropriated $2,000,000 for BOBI’s bridge inspection program activities in fiscal year 2023. 2. OMB notified DOT that it had apportioned the entire amount of BOBI’s appropriation. 3. DOT notified BOBI that it had allotted $500,000 of its appropriation for the first quarter of fiscal year 2023. 4. During the month of October, BOBI entered into the following contracts: For testing equipment $100,000 For materials and supplies 50,000 BOBI also obligated the full amount of its operating lease payments ( $90,000) for the first quarter of 2023. 5. Treasury advised BOBI that it paid the $20,000 invoice that BOBI had forwarded for payment before October 1, 2022. 6. BOBI received the materials and supplies ordered in transaction 4. However, the invoice was for $52,000 because the supplier sent additional supplies, as permitted by the contract. BOBI accepted the entire shipment. BOBI also recorded as a liability the $30,000 rent due October 1. 7. BOBI sent a disbursement schedule to Treasury requesting the following payments: For materials and supplies $52,000 For rent 30,000 8. BOBI sent a disbursement schedule to Treasury requesting salary checks totaling $90,000. 9. Treasury advised BOBI that it had made payments totaling $172,000, pursuant to the schedules forwarded by BOBI in transactions 7 and 8. 10. To prepare accrual-basis financial statements for the month of October, BOBI made adjusting journal entries for the following items: a. To accrue salaries earned in October but not paid— $10,000 b. To record materials and supplies used— $12,000 c. To record one month’s depreciation on equipment— $1,000
Following is a
unit of the Department of Transportation (DOT), as of October 1, 2022.
| Bureau of Bridge Inspections | ||
|---|---|---|
| Trial Balance | ||
| October 1, 2022 | ||
| Budgetary accounts | ||
| Total actual resources-collected | $20,000 | |
| Delivered orders-obligations, unpaid | $20,000 | |
| Totals | $20,000 | $20,000 |
| Proprietary accounts: | ||
| Fund balance with Treasury | $20,000 | |
| Inventory, materials, and supplies | 6,000 | |
| General property, plant, and equipment | 30,000 | |
| Disbursements in transit | $20,000 | |
| Cumulative results of operations | 36,000 | |
| Totals | $56,000 | $56,000 |
BOBI is responsible for overseeing state inspections of bridges constructed with federal funds. It
reports program expenses by object of account. BOBI does not use commitment accounting, but does
obligate budgetary resources when it enters into contracts or sends purchase orders to buy capital
assets and supplies and materials. It also obligates resources for operating leases.
The following transactions occurred during the month of October 2022:
1. Congress appropriated $2,000,000 for BOBI’s bridge inspection program activities in fiscal
year 2023.
2. OMB notified DOT that it had apportioned the entire amount of BOBI’s appropriation.
3. DOT notified BOBI that it had allotted $500,000 of its appropriation for the first quarter of fiscal
year 2023.
4. During the month of October, BOBI entered into the following contracts:
| For testing equipment | $100,000 |
| For materials and supplies | 50,000 |
BOBI also obligated the full amount of its operating lease payments ( $90,000) for the first quarter
of 2023.
5. Treasury advised BOBI that it paid the $20,000 invoice that BOBI had forwarded for payment
before October 1, 2022.
6. BOBI received the materials and supplies ordered in transaction 4. However, the invoice was for
$52,000 because the supplier sent additional supplies, as permitted by the contract. BOBI accepted
the entire shipment. BOBI also recorded as a liability the $30,000 rent due October 1.
7. BOBI sent a disbursement schedule to Treasury requesting the following payments:
| For materials and supplies | $52,000 |
| For rent | 30,000 |
8. BOBI sent a disbursement schedule to Treasury requesting salary checks totaling $90,000.
9. Treasury advised BOBI that it had made payments totaling $172,000, pursuant to the schedules
forwarded by BOBI in transactions 7 and 8.
10. To prepare accrual-basis financial statements for the month of October, BOBI made adjusting journal
entries for the following items:
a. To accrue salaries earned in October but not paid— $10,000
b. To record materials and supplies used— $12,000
c. To record one month’s depreciation on equipment— $1,000
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