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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Textbook Question
Chapter 3, Problem 2C
(a) Prepare general ledger and subsidiary ledger entries to record the following transactions of the City of Ann Arbor, Michigan, Community Television Network Special Revenue Fund for the year ended June 30, 20X3. (b) Reconcile the general ledger and the subsidiary ledgers at year end. (c) Close the accounts.
- 1. The Ann Arbor City Council adopted the following budget on the modified accrual basis for the Community Television Network Special Revenue Fund:
- 2. The city collected cash for the network as follows:
- 3. City Council revised the Community Television Network Special Revenue Fund appropriations for “Personnel services” and “Payroll fringes/insurance” upward by $40,000 and $15,000, respectively, as a result of hiring an additional employee and minor modifications to the employees’ insurance benefits. Appropriations for “Materials and supplies” and “Capital outlay” were reduced by $3,000 and $60,000, respectively.
- 4. The payroll was approved and paid, $559,339.
- 5. Payroll
fringe benefit and insurance costs of $190,000 were incurred during the year; $10,000 was not paid by year end. - 6. The network ordered materials and supplies with an estimated cost of $17,000 and equipment expected to cost $192,664.
- 7. “Other services” of $194,000 and “Other charges” of $159,547 were incurred and paid.
- 8. The network received the materials and supplies ordered. The actual cost was $16,980. The network also received must of the equipment ordered, but orders for $50,000 of transmission equipment had not been received by year end. The actual cost of the equipment received was equal to the expected costs.
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Assume that the City of Pasco maintains its books and records in a manner that facilitates preparation of the fund financial statements. The city engaged in the following transactions related to its general fund during the current fiscal year. The city formally integrates the budget into the accounting records. The city does not maintain an inventory of supplies. All amounts are in thousands. Prepare, in summary form, the appropriate journal entries.
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1. Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements. The City pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the General Fund had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made in the City s General Fund?
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City of Greenville
General Fund
Subsidiary Ledger Account Balances (in thousands)
Estimated Revenue
Taxes
For the Fiscal Year
Fines & Forfeits
Intergovernmental Revenue
Charges for Services
Revenues
Debits
6,048
303
497
370
Credits
Taxes
Fines & Forfeits
Intergovernmental Revenue
Charges for Services
Appropriations
Public Safety
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6,080
308
497
368
1,636
3,375
Public Works
Culture & Recreation
Interfund Transfers Out
Expenditures
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1,465
724
Estimated Other Financing Uses
48.
1,622
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3,360
Public Works
1,443
Culture & Recreation
715
Encumbrances
General Government
12
I
Public Safety
13
Public Works
21
232
Culture & Recreation
0
Other Financing Uses
Interfund…
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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