Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 4, Problem 18EP
During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city:
All goods ordered during the year were received at the following actual costs:
Required
- a. Prepare a summary
journal entry in the General Fund general journal to record the issuance of purchase orders. In addition, show subsidiary detail for the Encumbrances ledger. - b. Prepare summary journal entries in the General Fund general journal to record the receipt of and payment for goods during the year. In addition, show subsidiary detail for the Encumbrances and Expenditures ledgers.
- c. Does the fact that the actual cost of goods received during the year exceeded the estimated cost when ordered suggest a budgetary or management problem?
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During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city:
General Government
$
171,200
Public Safety
309,000
Public Works
231,400
Culture and Recreation
188,700
Health and Welfare
175,100
Miscellaneous
25,300
Total
$
1,100,700
All goods ordered during the year were received at the following actual costs:
General Government
$
166,800
Public Safety
308,700
Public Works
233,800
Culture and Recreation
188,700
Health and Welfare
178,300
Miscellaneous
27,000
Total
$
1,103,300
Required
a.&b. Prepare journal entries in the General Fund general journal to record the issuance of purchase orders and to record the receipt of and payment for goods during the year. Also show subsidiary detail for the Encumbrances and Expenditures ledgers. (If no entry is required for a…
The Village of Dove ruses the purchases method of accounting for its inventories of supplies in the General Fund. GASB standards, however, require that the consumption method be used for the government-wide financial statements. Because its computer system is very limited, the Village uses a periodic inventory system, adjusting inventory balances based on a physical inventory of supplies at year-end. When supplies are received during the year, the Village records expenditures and expenses in the general journals of the General Fund and governmental activities, respectively. The Village’s inventory records showed the following information for the fiscal year ending December 31, 2014:
Balance of inventory, December 31, 2013 $132,000
Purchases of inventory during 2014 772,000
Balance of inventory, December 31, 2014 150,000
Required
a. Provide the required adjusting entries at the end of 2014, assuming that the…
During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city:
General Government
$
172,200
Public Safety
310,000
Public Works
232,400
Culture and Recreation
189,700
Health and Welfare
176,100
Miscellaneous
25,400
Total
$
1,105,800
All goods ordered during the year were received at the following actual costs:
General Government
$
167,800
Public Safety
309,700
Public Works
234,800
Culture and Recreation
189,700
Health and Welfare
179,300
Miscellaneous
27,200
Total
$
1,108,500
Required
a.&b. Prepare journal entries in the General Fund general journal to record the issuance of purchase orders and to record the receipt of and payment for goods during the year. Also show subsidiary detail for the Encumbrances and Expenditures ledgers. (If no
Chapter 4 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 4 - Last month a local government collected property...Ch. 4 - When preparing the statement or schedule of...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - If the General Fund of a certain city needs...Ch. 4 - Prob. 6QCh. 4 - Explain why some governments may account for...Ch. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - A government reports Deferred Inflows of...Ch. 4 - Prob. 13CCh. 4 - Prob. 15CCh. 4 - Choose the best answer. When equipment is...Ch. 4 - Prob. 17.2EPCh. 4 - Goods for which a purchase order had been placed...Ch. 4 - Prob. 17.4EPCh. 4 - Garden City has calculated that General Fund...Ch. 4 - Prob. 17.6EPCh. 4 - Prob. 17.7EPCh. 4 - Prob. 17.8EPCh. 4 - Carroll City levies 200,000 of property taxes for...Ch. 4 - Prob. 17.10EPCh. 4 - During the current year, the City of Hickory Hills...Ch. 4 - On July 1, 2020, the beginning of its fiscal year,...Ch. 4 - Prob. 20EPCh. 4 - Prob. 21EPCh. 4 - At the end of the current fiscal year, the City of...Ch. 4 - The City of Waterville applied for a grant from...Ch. 4 - The following transactions occurred during the...Ch. 4 - The following transactions affected various funds...Ch. 4 - The following events and transactions relate to...Ch. 4 - The City of Castletons General Fund had the...Ch. 4 - Prob. 28EP
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