Question

P5-46. adjusting entries before preparing the city's fi- rer paragraph to guide her assistant in making "gave her assistant data regarding the accounts that e a short paragraph regarding the basic principles for adjust- (Journal entries for year-end adjustments) The chief accountant for Eliana City needed to make adjusting entries before ! nancial statements for calendar year 2019. She wrote a brief paragraph to guide the adjusting entries for the General Fund and then gave her assistant data regarom might be affected by the adjustments. Write a short paragraph regarding the basic pm ing the revenue and expenditure accounts. Then, use the following information to make adjusting journal entries, if needed. Identify the expenditure accou . Identify the expenditure accounts at the object-of-expenditure level. 1. At December 31, the Property taxes receivable account showed a balance of $420,000, all of which was considered to be collectible. She estimated that $315.000 of that amount would be collected in the first 60 days of 2020. 2. The Health Department has a state grant that requires it to incur expenditures before the city can bill for the grant. The Department incurred $45.000 of expenditures under the grant during the last quarter of 2019 and sent a billing to the state, but the billing has not been recorded. 3. During the last week in December, Eliana's employees earned $80,000. They will be paid with the first paycheck in 2020. 4. The city received an invoice for $15,000 from its Electricity Proprietary Fund for December elec- tricity services. The invoice, which has not yet been entered in the records, will be paid in early February 5. City employees are allowed to accumulate up to 30 days' vacation leave and to get cash for unused leave when they are terminated or retire. The total liability to city employees for earned, but unused, vacation leave increased from $1,210,000 to $1.290,000 during 2019. Two employees retired during the last week of December and will be paid $22,000 for unused leave with their final paychecks in January 6. Numerous claims have been filed against the city for incidents attributed to several of its depart- ments. Discussions with city attorneys who have been handling the cases indicate that the city could ultimately pay out $1,850,000 in judgments or settlements, an increase of $100,000 over last year's

Answer 1

Particulars	Amount (DR )	Amount (CR )
Account receivables (Cash & Cash equivalent).. DR	315000
Account receivables	105000
To Account receivables		420000
Grant receivables ..Dr	45000
To Capital Grant		45000
Salary Account	80000
To Salary payable		80000
Electricty Expenses account	15000
To Electricity bill payable		15000
Leave encashment Expenditure (Employee benefit expenses)	80000
To Leave payable		80000
Leave payable	22000
To salary payable		22000
Dispute claim expenses Account	100000
To Provision for the dispute claim expenses account		100000
Provision for the dispute claim expenses account	35000
To Claim payable		35000
Pension expenses (Employee benefit expenses ) Account	650000
To Provision of the pension expenses		650000
Profit and loss account	54000
To Capital grant		54000
(Assuming the same was entered in the profit and loss account while received)