ADVANCED ACCOUNTING
ADVANCED ACCOUNTING
4th Edition
ISBN: 9781618533128
Author: Halsey
Publisher: Cambridge Business Publishers
bartleby

Videos

Question
Book Icon
Chapter 9, Problem 53P
To determine

Prepare the required journal entries to record the given transactions in the general fund for the City of Superior.

Expert Solution & Answer
Check Mark

Explanation of Solution

The General Fund is the main fund used by a government entity. The fund is used to monitor all capital inflows and outflows that are not affiliated with special purpose funds.

The required journal entries in the general fund for the City of Superior are as follows:

DateAccount title and ExplanationPost RefDebit ($)Credit ($)
a.Estimated revenues A/c $184,226 
 Estimated other financing sources $4,600 
 Appropriations  $177,729
 Budgetary fund balance  $11,097
 (To record the budget)   
     
b.Cash A/c $4,600 
 Receivables—real estate & personal property taxes $156,975 
 Receivables—intergovernmental revenues $28,256 
 Revenues— real estate & personal property taxes  $156,975
 Revenues—intergovernmental  $28,256
 Other financing sources—bond proceeds  $4,600
 (To record revenues and other financing sources)   
     
c.Encumbrances $178,039 
 Budgetary fund balance  $178,039
 (To record the issuance of purchase invoices)   
     
d.Budgetary fund balance $175,969 
 Encumbrances  $175,969
 (To reverse previous Encumbrance journal entry)   
     
e.Expenditures—general government $26,396 
 Expenditures—public safety $17,597 
 Expenditures—education $105,581 
 Expenditures—public works $8,798 
 Expenditures—human services $17,597 
 Payables A/c  $175,969
 (To record expenditures)   
     
f.Cash A/c $10,678 
 Payables $172,450 
 Receivables—real estate & personal property taxes  $156,285
 Receivables—intergovernmental revenues  $26,843
 (To record collection of receivables and payment of payables)   
     
g.Revenues A/c $2,243 
 Deferred revenues A/c  $2,243
 (Deferral of revenues)   

Table (1)

The required closing entries in the general fund for the City of Superior are as follows:

DateAccount title and ExplanationPost RefDebit ($)Credit ($)
h.Appropriations A/c $177,729 
 Budgetary fund balance $11,097 
 Estimated revenues  $184,226
 Estimated other financing sources  $4,600
 (To reverse budget entry)   
     
 Revenues—Real Estate & personal Property Taxes $154,732 
 Revenues—Intergovernmental $28,256 
 Other Financing Sources—Bond Proceeds $4,600 
 Expenditures—General Government  $26,396
 Expenditures—Public Safety  $17,597
 Expenditures—Education  $105,581
 Expenditures—Public Works  $8,798
 Expenditures—Human Services  $17,597
 Expenditures—Debt Principal  $690
 Expenditures—Debt Interest  $230
 Fund Balance—Unreserved  $10,699
 (To close out revenue and expenditure accounts)   
     
 Budgetary fund balance $2,070 
 Encumbrances  $2,070
     
 Fund balance - unassigned $2,070 
 Fund balance—Assigned  $2,070
 (To close remaining encumbrances and reserve Fund Balance for encumbrances that lapsed, but are expected to be honored in the following year)   

Table (2)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
What is Fund Accounting?; Author: Aplos;https://www.youtube.com/watch?v=W5D5Dr0j9j4;License: Standard Youtube License