Author Question: A basic manual accounting system includes all of the following except a. a chart of accounts b. a ... (Read 61 times)

plus1 · **on:** Jul 5, 2018

A basic manual accounting system includes all of the following except
a. a chart of accounts
b. a twocolumn journal
c. a general ledger
d. a computer on which the system runs

Question 2

(Journal entries for several funds)

Prepare entries to record the following transactions, showing which funds are affected. If a transaction affects more than one fund, prepare entries for all affected funds.

a. The county adopts the following budget for its General Fund on January 1, 2013
Estimated revenues:
Property taxes 520,000
Sales taxes 80,000
Appropriations:
Salaries 480,000
Supplies and other 60,000
Transfer to Debt Service Fund 50,000
b. The county sends property tax invoices to all property owners. To raise the needed 520,000, the county sends tax bills for 525,000, anticipating that some will not pay.
c. Property owners pay taxes amounting to 500,000 . The county writes off 5,000 in taxes as uncollectible. The remaining taxpayers are declared delinquent, and the county adds interest and penalties of 1,000 to their tax bills. The county believes that all delinquent taxpayers will pay their bills between April 1 and June 30, 2014
d. The county issues a purchase order for 22,000 to acquire a police sedan. It charges the General Fund appropriation for supplies and other.
e. The police sedan arrives in good order, together with an invoice for 21,000 . The supplier says he got a good deal on the price, so he is passing to reduced cost on to the county. The county approves the invoice for payment.
f. Debt service of 50,000 (interest of 20,000 and bond principal of 30,000) comes due. The debt service will be paid out of the Debt Service Fund.
g. The General Fund transfers 50,000 cash to the Debt Service Fund, and the Debt Service Fund immediately makes payment of the debt service.
h. The county needs two sanitation trucks. It decides to finance the trucks by issuing 10-year bonds. The bond proceeds, amounting to 200,000, are deposited in the Capital Projects Fund.

GCabra · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

d

Answer to Question 2

a. GF Estimated revenues - property taxes 520,000
Estimated revenues - sales taxes 80,000
Appropriations - salaries 480,000
Appropriations - supplies and other 60,000
Appropriations - transfer to Debt Service Fund 50,000
Budgetary fund balance 10,000

b. GF Property taxes receivable 525,000
Revenues - property taxes 520,000
Allowance for uncollectible property taxes 5,000

c. GF Cash 500,000
Allowance for uncollectible property taxes 5,000
Property taxes receivable 505,000

GF Property taxes receivable - delinquent 20,000
Property taxes receivable 20,000

GF Interest and penalties receivable 1,000
Revenues - interest and penalties 1,000

GF Revenues - property taxes 20,000
Deferred revenues 20,000

d. GF Encumbrances - supplies and other 22,000
Budgetary fund balance reserved for encumbrances 22,000

e. GF Budgetary fund balance reserved for encumbrances 22,000
Encumbrances - supplies and other 22,000

GF Expenditures - supplies and other 21,000
Vouchers payable 21,000

f. DSF Expenditures - interest 20,000
Expenditures - bond principal 30,000
Matured interest payable 20,000
Matured bond payable 30,000

g. GF Transfer out to Debt Service Fund 50,000
Cash 50,000

DSF Cash 50,000
Transfer in from General Fund 50,000

DSF Matured interest payable 20,000
Matured bond payable 30,000
Cash 50,000

h. CPF Cash 200,000
Other financing source--long-term debt issued 200,000