Accounting Assignment
Part 1: Research the following statements and write a paper of 500 words on your findings:
• What are the key differences between a governmental unit and a commercial company?
• Discuss the following terms and how they are used during the budget process of a governmental unit:
o Appropriations
o Encumbrances
o Expenditures
o Budgetary fund balances
• Give examples for each of the above terms.
Part 2: Given the following information, create the journal entries required for each of the situations described:
|
Estimated revenues
|
|
|
Property taxes
|
$1,250,000
|
|
Fines and forfeits
|
80,000
|
|
Intergovernmental
|
500,000
|
|
|
|
|
Total
|
$1,830,000
|
|
|
|
|
Appropriations
|
|
|
General
|
$300,000
|
|
Streets
|
50,000
|
|
Public safety
|
800,000
|
|
|
|
|
Total
|
$ 1,150,000
|
1. Make the journal entry to record the adoption of the annual budget.
2. Make the journal entries necessary to record the following cash revenues that were received:
|
Property taxes
|
$800,000
|
|
Fines and forfeits
|
73,000
|
|
Intergovernmental
|
300,000
|
|
|
|
|
Total
|
$1,173,000
|
1. Purchase orders were issued for the following goods and services:
|
General
|
$285,000
|
|
Streets
|
50,000
|
|
Public safety
|
670,000
|
|
|
|
|
Total
|
$ 1,005,000
|
1. Purchase orders were fulfilled based upon the following estimated and actual costs:
|
|
Estimated
|
Actual
|
|
General
|
$285,000
|
$280,000
|
|
Streets
|
50,000
|
50,000
|
|
Public safety
|
670,000
|
660,000
|
|
|
|
|
|
Total
|
$ 1,005,000
|
|