A government has claims and judgments outstanding at the beginning of 20X5 of 1,000,000 . These claims and judgments are expected to result in awards against the government of 800,000 .
75,000 of these claims is due and payable from the General Fund at December 31, 20X4 . At the end of 20X5, the government has claims and judgments outstanding of 2,000,000 . These claims and judgments are expected to result in awards against the government of 1,200,000 . None of these claims are due and payable from the General Fund at December 31, 20X5 . The government paid claims and judgments of 400,000 during 20X5 . General Fund expenditures for claims and judgments for 20X5 should be reported at what amount?
A. 325,000.
B. 400,000.
C. 725,000.
D. 800,000.
Question 2
A client has a massage and asks the company bookkeeper to mail her the bill. The bookkeeper should make whichentry to record the invoice?
a. No entry until the cash is received
b. Fees Earned, debit; Accounts Receivable, credit
c. Cash, debit; Fees Earned, credit
d. Accounts Receivable, debit; Fees Earned, credit
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