Author Question: The ____________________ is a method of accounting under which revenues are recorded when paid by ... (Read 71 times)

clmills979

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The ___________________ _ is a method of accounting under which revenues are recorded when paid by customers and expenses are recorded when cash is paid.
 Fill in the blank(s) with correct word

Question 2

(Journal entries - set of transactions)
 
  The Federal Bureau of Nutrition Standards (BNS), a unit of the Health Department, is responsible for establishing standards for the quality and nutritional content of packaged food products.
 
  Prepare budgetary and proprietary entries to record the following transactions for the month of October, 2013.
   a. BNS received an appropriation in the amount of 900,000.
   b. The Office of Management and Budget apportioned the entire appropriation.
   c. The Health Department made the first quarter's allotment of 225,000 to BNS.
   d. BNS placed a purchase order for 14,000 for testing supplies. (BNS does not use commitment accounting.)
   e. All the supplies arrived in good order. The vendor submitted an invoice for 15,000 because additional supplies were shipped. (The purchase order permitted a 10 percent delivery overrun.) The invoice was accepted by BNS, and the supplies were placed in inventory.
   f. BNS sent a disbursement schedule to Treasury, requesting payment of the 15,000 invoice.
   g. Treasury notified BNS that the 15,000 invoice was paid.
   h. BNS used 6,000 of the supplies acquired in transaction e. (BNS charges all expenses to the account Inspection program costs.)
   i. BNS sent a disbursement schedule to Treasury, requesting salary checks in the amount of 100,000.
   j. Treasury sent salary checks to BNS in the amount of 100,000 for payment to BNS employees.
   k. BNS made adjusting journal entries to accrue salary expenses in the amount of 8,000, so it could prepare month-end financial statements.



mochi09

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Answer to Question 1

cash basis of accounting

Answer to Question 2

a. Budgetary
Other appropriations realized 900,000
Unapportioned authority 900,000

Proprietary
Fund balance with Treasury 900,000
Unexpended appropriations
appropriations received 900,000

b. Budgetary
Unapportioned authority 900,000
Apportionments 900,000

c Budgetary
Apportionments 225,000
Allotments - realized resources 225,000

d. Budgetary
Allotments - realized resources 14,000
Undelivered orders  obligations, unpaid 14,000

e. Budgetary
Undelivered orders  obligations, unpaid 14,000
Allotments - realized resources 1,000
Delivered orders  obligations, unpaid 15,000

Proprietary
Inventory, operating materials and supplies 15,000
Accounts payable 15,000

Unexpended appropriations - used 15,000
Expended appropriations 15,000

f. Proprietary
Accounts payable 15,000
Disbursements in transit 15,000

g. Budgetary
Delivered orders  obligations, unpaid 15,000
Delivered orders  obligations, paid 15,000

Proprietary
Disbursements in transit 15,000
Fund balance with Treasury 15,000

h. Proprietary
Inspection program costs (supplies) 6,000
Inventory, operating materials and supplies 6,000

i. Budgetary
Allotments - realized resources 100,000
Delivered orders  obligations, unpaid 100,000

Proprietary
Inspection program costs (salaries) 100,000
Disbursements in transit 100,000

Unexpended appropriations - used 100,000
Expended appropriations 100,000

j. Budgetary
Delivered orders  obligations, unpaid 100,000
Delivered orders  obligations, paid 100,000

Proprietary
Disbursements in transit 100,000
Fund balance with Treasury 100,000

k. Budgetary
Allotments - realized resources 8,000
Delivered orders  obligations, unpaid 8,000

Proprietary
Inspection program costs (salaries) 8,000
Accrued funded payroll 8,000

Unexpended appropriations - used 8,000
Expended appropriations 8,000



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