Question

Review View Help Layout References Mailings Rom 14 - AAA-EEEE AT - x x A-D-A-EEEE - - - AaBbcode AaBbcode AaBbc AaBbcc AaB Aabba 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtit Paragraph Styles . . 6 Font T . . . Among the activities of Calabash County for the fiscal year beginning July 1, 2005, and ending June 30, 2006, were the following: 2005 July 1 Approved the annual budget for the Gasoline Tax Special Revenue Fund as follows: Appropriations, $600,000. estimated revenues, $640,000, July 5 Executed a contract for the construction of a new public library at a total cost of $5 million Aug. 1 Authorized a special assessment of $400,000 on residents of the North Sub- division for construction of sidewalks. The special assessment, which was payable in five annual installments of $80.000 beginning October 1, 2005, with interest at 9% a year on the unpaid installments, was to be accounted form the Special Assessment Special Revenue Fund. Sept.1 Acquired from proceeds of general tax revenues equipment costing $20,000 (the related purchase order was for $19,600). The equipment was to be used by the general government of Calabash County, which does not depreciate plant assets, in the voluntarily maintained General Capital Assets Account Group. The county uses encumbrance accounting Instructions: 1. Prepare journal entries for the fiscal year ended June 30, 2006, for the foregoing transactions or events of Calabash County. 2. Identify the funds or account groups in which the journal entries are recorded. english (United States) Focus 30 - w EN NS $ . SONY Ерок

Answer 1

Solution:

1. Journal entries for the fiscal year ended June 30, 2006:

Date	Particulars	Amount ($) (Dr.)	Amount ($) (Cr.)
1/7/2005	Estimated Revenues           Appropriations           Budgetary Fund Balance	640,000	600,000 40,000
5/7/2005	Encumbrances          Fund Balance Reserved for Encumbrances	5,000,000	5,000,000
1/8/2005	Special Assessments Receivable (Current) Special Assessments Receivable (Deferred)          Revenues          Deferred Revenues	80,000 320,000	80,000 320,000
1/9/2005	Expenditures          Vouchers Payable	20,000	20,000
1/9/2005	Fund Balance Reserved for Encumbrances          Encumbrances	19,600	19,600
1/9/2005	Machinery and Equipment Investment in General Capital Assets from General Fund Revenues	20,000	20,000

2. Funds or accounts in which the journal entries are recorded are:

Journal Entry	Fund/ Account
Estimated Revenues           Appropriations           Budgetary Fund Balance	Special Revenue Fund (SRF)
Encumbrances            Fund Balance Reserved for Encumbrances	Capital Projects Fund (CPF)
Special Assessments Receivable (Current) Special Assessments Receivable (Deferred)          Revenues          Deferred Revenues	Special Revenue Fund (SRF)
Expenditures          Vouchers Payable	General Fund (GF)
Fund Balance Reserved for Encumbrances           Encumbrances	General Fund (GF)
Machinery and Equipment            Investment in General Capital Assets                     from General Fund Revenues	Governmental Capital Assets Account Group (GCAAG)