3a 3b 4 5 = 0 0 0 0 To reserve encumbrances. = ÷ To record expenditure. DO 0 0 0 ÷ 0 0 = 0 0 ÷ 0 0 ÷ 0 0 Appropriation Appropriations Ledger Appropriation: Public Safety Supplies Encumbrances Expenditures Available Item Cr. Dr. Cr. Dr. Appropriation 1 0 0 0 0 0 2 ° 0 0 0 0 За ° 0 0 0 0 зь 0 0 0 0 0 Check Save Answers Question 1 Not complete Marked out of 7.14 Flag question Scenario and General Fund budgetary journal entries The scenario: Croton City maintains four governmental-type funds: a General Fund, a Library Special Revenue Fund, a Capital Projects Fund, and a Debt Service Fund. Croton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars). Cash Property taxes receivable Debits Credits $1,800 800 Salaries payable Deferred property tax revenues Unassigned fund balance Totals $700 300 1,600 $2,600 $2,600 Croton has adopted the following budgetary and accounting policies: • Encumbrance accounting is used only for the acquisition of supplies and for the award of contracts for construction and construction-related activities. Open encumbrances lapse at the end of the year, but are considered in developing the next year's budget. Because final income tax returns are not required to be filed until April 15 of the year following the end of a calendar year, "available" for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year. • Croton allows its employees to accumulate unused vacation days and to receive cash for up to 30 days of unused vacation leave at retirement. Such payments are charged to the department's appropriation for salarie • All revenues received by the library from fines, donations, and fundraising events are credited to Revenues-miscellaneous. General Fund budgetary journal entries: Prepare journal entries to record the following budgetary transactions applicable to the General Fund. Also, prepare an appropriations ledger for the Public safety supplies appropriation. (Because you will need to prepare trial balances for each of the funds for Part D of this problem, it is suggested that you post the opening trial balance and the journal entries to general ledger T accounts.) 1. The Croton council adopted the following General Fund budget for 2019: Revenues-property taxes Revenues-personal income taxes $9,000 Revenues-intergovernmental 1,000 Revenues-recreation fees Appropriations: Public safety salaries Public safety supplies 500 Public works salaries Parks salaries Transfer to Library Fund Transfer to Debt Service Fund 1,200 2. Croton's Public Safety Department placed two purchase orders against its supplies appropriation, one for $300 for firearms and one for $150 for uniforms. 3. The firearms were received, with an invoice for $330. The purchase order allowed shipment of 10 percent over the amount ordered, so the invoice was approved. 4. The invoice for firearms was paid. 5. The Croton Cats won the World Series. To provide more funds for crowd control at the parade, the council increased the Public safety salaries appropriation by $100. NOTE: Not all of the journal entry rows are needed to record the budget in Ref. 1. Select "No entry" as your answer and leave the Debit and Credit answers blank (zero) for any rows that are not needed. Ref. Description Debit = 0 0 = 0 0 = 0 0 = 0 0 = 0 0 . 0 0 A 0 0 수 0 0 ÷ 0 0 ÷ 0 0 ÷ 0 0 ÷ 0 0 = 0 0 0 0 0 0 0 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
3a
3b
4
5
=
0
0
0
0
To reserve encumbrances.
=
÷
To record expenditure.
DO
0
0
0
÷
0
0
=
0
0
÷
0
0
÷
0
0
Appropriation
Appropriations Ledger
Appropriation: Public Safety Supplies
Encumbrances
Expenditures Available
Item
Cr.
Dr.
Cr.
Dr.
Appropriation
1
0
0
0
0
0
2
°
0
0
0
0
За
°
0
0
0
0
зь
0
0
0
0
0
Check
Save Answers
Transcribed Image Text:3a 3b 4 5 = 0 0 0 0 To reserve encumbrances. = ÷ To record expenditure. DO 0 0 0 ÷ 0 0 = 0 0 ÷ 0 0 ÷ 0 0 Appropriation Appropriations Ledger Appropriation: Public Safety Supplies Encumbrances Expenditures Available Item Cr. Dr. Cr. Dr. Appropriation 1 0 0 0 0 0 2 ° 0 0 0 0 За ° 0 0 0 0 зь 0 0 0 0 0 Check Save Answers
Question 1 Not complete
Marked out of 7.14
Flag question
Scenario and General Fund budgetary journal entries
The scenario: Croton City maintains four governmental-type funds: a General Fund, a Library Special Revenue Fund, a Capital Projects Fund, and a Debt Service Fund.
Croton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars).
Cash
Property taxes receivable
Debits Credits
$1,800
800
Salaries payable
Deferred property tax revenues
Unassigned fund balance
Totals
$700
300
1,600
$2,600
$2,600
Croton has adopted the following budgetary and accounting policies:
• Encumbrance accounting is used only for the acquisition of supplies and for the award of contracts for construction and construction-related activities. Open encumbrances lapse at the end of the year, but are considered in developing the next year's budget.
Because final income tax returns are not required to be filed until April 15 of the year following the end of a calendar year, "available" for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year.
• Croton allows its employees to accumulate unused vacation days and to receive cash for up to 30 days of unused vacation leave at retirement. Such payments are charged to the department's appropriation for salarie
• All revenues received by the library from fines, donations, and fundraising events are credited to Revenues-miscellaneous.
General Fund budgetary journal entries: Prepare journal entries to record the following budgetary transactions applicable to the General Fund. Also, prepare an appropriations ledger for the Public safety supplies appropriation. (Because you will need to prepare trial balances for each of the funds for Part D of this problem, it is suggested that you post the opening trial balance and the journal entries to general ledger T
accounts.)
1. The Croton council adopted the following General Fund budget for 2019:
Revenues-property taxes
Revenues-personal income taxes
$9,000
Revenues-intergovernmental
1,000
Revenues-recreation fees
Appropriations:
Public safety salaries
Public safety supplies
500
Public works salaries
Parks salaries
Transfer to Library Fund
Transfer to Debt Service Fund
1,200
2. Croton's Public Safety Department placed two purchase orders against its supplies appropriation, one for $300 for firearms and one for $150 for uniforms.
3. The firearms were received, with an invoice for $330. The purchase order allowed shipment of 10 percent over the amount ordered, so the invoice was approved.
4. The invoice for firearms was paid.
5. The Croton Cats won the World Series. To provide more funds for crowd control at the parade, the council increased the Public safety salaries appropriation by $100.
NOTE: Not all of the journal entry rows are needed to record the budget in Ref. 1. Select "No entry" as your answer and leave the Debit and Credit answers blank (zero) for any rows that are not needed.
Ref.
Description
Debit
=
0
0
=
0
0
=
0
0
=
0
0
=
0
0
.
0
0
A
0
0
수
0
0
÷
0
0
÷
0
0
÷
0
0
÷
0
0
=
0
0
0
0
0
0
0
0
Transcribed Image Text:Question 1 Not complete Marked out of 7.14 Flag question Scenario and General Fund budgetary journal entries The scenario: Croton City maintains four governmental-type funds: a General Fund, a Library Special Revenue Fund, a Capital Projects Fund, and a Debt Service Fund. Croton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars). Cash Property taxes receivable Debits Credits $1,800 800 Salaries payable Deferred property tax revenues Unassigned fund balance Totals $700 300 1,600 $2,600 $2,600 Croton has adopted the following budgetary and accounting policies: • Encumbrance accounting is used only for the acquisition of supplies and for the award of contracts for construction and construction-related activities. Open encumbrances lapse at the end of the year, but are considered in developing the next year's budget. Because final income tax returns are not required to be filed until April 15 of the year following the end of a calendar year, "available" for income taxes is defined as taxes expected to be collected within 120 days after the end of the calendar year. • Croton allows its employees to accumulate unused vacation days and to receive cash for up to 30 days of unused vacation leave at retirement. Such payments are charged to the department's appropriation for salarie • All revenues received by the library from fines, donations, and fundraising events are credited to Revenues-miscellaneous. General Fund budgetary journal entries: Prepare journal entries to record the following budgetary transactions applicable to the General Fund. Also, prepare an appropriations ledger for the Public safety supplies appropriation. (Because you will need to prepare trial balances for each of the funds for Part D of this problem, it is suggested that you post the opening trial balance and the journal entries to general ledger T accounts.) 1. The Croton council adopted the following General Fund budget for 2019: Revenues-property taxes Revenues-personal income taxes $9,000 Revenues-intergovernmental 1,000 Revenues-recreation fees Appropriations: Public safety salaries Public safety supplies 500 Public works salaries Parks salaries Transfer to Library Fund Transfer to Debt Service Fund 1,200 2. Croton's Public Safety Department placed two purchase orders against its supplies appropriation, one for $300 for firearms and one for $150 for uniforms. 3. The firearms were received, with an invoice for $330. The purchase order allowed shipment of 10 percent over the amount ordered, so the invoice was approved. 4. The invoice for firearms was paid. 5. The Croton Cats won the World Series. To provide more funds for crowd control at the parade, the council increased the Public safety salaries appropriation by $100. NOTE: Not all of the journal entry rows are needed to record the budget in Ref. 1. Select "No entry" as your answer and leave the Debit and Credit answers blank (zero) for any rows that are not needed. Ref. Description Debit = 0 0 = 0 0 = 0 0 = 0 0 = 0 0 . 0 0 A 0 0 수 0 0 ÷ 0 0 ÷ 0 0 ÷ 0 0 ÷ 0 0 = 0 0 0 0 0 0 0 0
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education