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 3P
1.
To determine
Prepare a budgetary comparison statement for the general fund for the fiscal year 20X8.
2. a.
To determine
State the effects of omission of encumbrance data for the fiscal year 20X8.
2. b.
To determine
Identify the circumstances in which including or excluding encumbrance data mislead users of a governmental fund budgetary comparison statement.
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Preparation of fund financial statements and schedules
Prepare a governmental funds balance sheet; a governmental funds statement of revenues, expenditures, and changes in fund balances; and a General Fund budgetary comparison schedule. In the budgetary comparison schedule, include a column for variances. To ease financial statement preparation, we supply you with the pre-closing trial balances for Croton City’s General Fund, Library Special Revenue Fund, Capital Projects Fund, and Debt Service Fund. Consider all funds as major funds for this exercise and classify the fund balance for the Debt Service Fund as Assigned fund balance. In addition, make calculations to determine which of the funds would be considered as nonmajor if Croton had not considered all of them to be major.
Preclosing Trial Balance for Croton City
General Fund
December 31, 2019
Debits
Credits
Budgetary Accounts
Estimated revenues – property taxes
$9,000
Estimated…
Preparation of financial statements and interpretation of operating results
Below is the December 31, 2022 trial balance for Radnor City's General Fund.
Trial Balance
Account
Debit
Credit
Estimated revenues-property taxes
$500,000
Estimated revenues-intergovernmental
150,000
Estimated revenues-licenses and fees
100,000
Estimated revenues-fines
50,000
Budgetary fund balance
Appropriations-general government
10,000
$159,000
Appropriations-parks and recreation
175,000
Appropriations-public safety
446,000
Appropriations-social services
30,000
Expenditures-public safety
441,000
Expenditures-general government
150,500
Expenditures-parks and recreation
170,500
Expenditures-social services
27,000
Cash
35,600
Property taxes receivable
67,200
Tax anticipation notes payable
10,000
Interest payable
800
Revenues-property taxes
497,000
Revenues-intergovernmental
154,000
Revenues-licenses and fees
99,000
Revenues-fines
48,000
Fund balance
62,000
Vouchers payable
21,000
Total
$1,701,800 $1,701,800
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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