Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Chapter 3, Problem 1C
(Budgetary Comparison Statement—Budgetary Basis Differs from GAAP—Town of Blacksburg, Virginia) Selected data for the Town of Blacksburg, Virginia, General Fund for the fiscal year ended June 30, 20X7, are presented here. The town's budgetary basis is the modified accrual basis except that encumbrances are treated as budgetary expenditures when the encumbrance is established, not when the goods or services are received.
Prepare the Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual for the General Fund of the Town of Blacksburg, Virginia, for the year ended June 30, 20X7. (Note: This case is based on a recent Comprehensive Annual Financial Report of the Town of Blacksburg, Virginia.)
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Following are transactions and events of the General Fund of the City of Springfield for the fiscal year ended December 31, 2020.
1. Estimated revenues (legally budgeted)
Property taxes
Sales taxes
Licenses and permits
Miscellaneous
2. Appropriations:
General government
Culture and recreation
Health and welfare.
3. Revenues received (cash)
Property taxes
Sales taxes
Licenses and permits
General government
Culture and recreation
Health and welfare.
5. Goods and services received (paid in cash)
General government
culture and recreation
Health and welfare
Miscellaneous
4. Encumbrances issued (includes salaries and other recurring items)
Estimated
$5,275,000
4,630,000
995,000
6. Budget revisions
Estimated
Revenues
Appropriations
Increase appropriations:
General government
$ 140,000
110,000
Culture and recreation.
7. Fund balance on January 1, 2020, was $753,000. There were no outstanding
encumbrances at that date.
a. Record the transactions using appropriate journal entries,
b. Prepare…
In the recording of a city’s budget, which one of the following accounts is debited? a. Appropriations b. Estimated Revenues c. Estimated Other Financing Uses d. Encumbrances
Chapter 3 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 3 - Governmental budgeting and budgetary control are...Ch. 3 - Distinguish between the following types of...Ch. 3 - Prob. 3QCh. 3 - What are budgetary control points? How do they...Ch. 3 - Prob. 5QCh. 3 - Why might a local government not prepare and adopt...Ch. 3 - Revenue estimates and appropriations enacted are...Ch. 3 - In business accounting, a single general ledger...Ch. 3 - Illustrations 3-2 and 3-3 show Revenues Subsidiary...Ch. 3 - An interim budgetary comparison statement for a...
Ch. 3 - Prob. 11QCh. 3 - An annual budgetary comparison schedule for a...Ch. 3 - General budgets are most common for which of the...Ch. 3 - Special budgets are best defined as budgets a....Ch. 3 - Prob. 1.3ECh. 3 - Which of the following statements is false? a....Ch. 3 - Which of the following statements is true? a....Ch. 3 - Appropriation requests for the General Fund are...Ch. 3 - Which of the following statements would be true...Ch. 3 - Prob. 2.3ECh. 3 - Which of the following GAAP requirements for...Ch. 3 - Prob. 2.5ECh. 3 - Prob. 3.1ECh. 3 - Which of the following items does a government...Ch. 3 - The budget data presented in a school district...Ch. 3 - Allotments are best defined as a. legislative...Ch. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - (Budgetary EntriesGeneral Ledger) The city of...Ch. 3 - (General LedgerSubsidiary Ledgers Relationship,...Ch. 3 - (General Ledger Entries) Record the following...Ch. 3 - (Encumbrances) Record the following transactions...Ch. 3 - (Operating Budget Preparation) The finance...Ch. 3 - (Budgetary and Other EntriesGeneral and Subsidiary...Ch. 3 - Prob. 3PCh. 3 - (Budgetary Comparison StatementBudgetary Basis...Ch. 3 - (a) Prepare general ledger and subsidiary ledger...Ch. 3 - Using the information from C3-2 and assuming that...
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