Professional Documents
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CH 19
CH 19
Governmental Units –
Governmental Funds
Chapter 19
Grantville Town
Post-Closing Trial Balance
June 30, 2001
Debits
Cash $310,000
Taxes receivable-delinquent 150,000
Accounts receivable 30,000
Supplies inventory 60,000
Total debits $550,000
Credits
Allowances for uncollectible
taxes – delinquent $ 10,000
Vouchers payable 140,000
Note payable (short-term) 150,000
Reserve for encumbrances 90,000
Unreserved fund balance 160,000
Total credits $550,000
Expenditures
Current services
General government $ 477,500
Public safety 897,750
Other 1,945,000
Total appropriations $3,320,250
Other financing sources (uses) 115,000
Budgeted increase in fund balance $ 64,750
©2003 Prentice Hall Business Publishing, Advanced Accounting 8/e, Beams/Anthony/Clement/Lowensohn 19 - 6
Recording the Budget
Appropriations $3,320,250
Less encumbrances 150,000
Unencumbered appropriations $3,170,250
Assume that the actual cost of the
equipment purchased is $140,000.
What are the journal entries?
Purchases
Purchases Method
Method
Consumption
Consumption Method
Method
Dr. Cr.
Appropriations Estimated Revenues
Estimated Other Expenditures
Financing Sources Encumbrances
Revenues Other Financing Uses
Contributions
Transfers from
from property
other funds
owners
Expenditures 475,000
Contracts Payable 427,500
Retained Percentage 47,500
To record expenditures and a 10% retained
percentage on the construction
Intergovernmental revenue
Due from Federal Government 400,000
Revenue 400,000
To recognize revenue from the federal grant
Special assessment
activities
Debt service
funds
Prepare governmental
fund financial statements.
–– Fund
Fund basis
basis –– Aggregate
Aggregate basis
basis
–– Financial
Financial resources
resources –– Economic
Economic resources
resources
measurement
measurement focus
focus measurement
measurement focus
focus
–– Modified
Modified accrual
accrual –– Accrual
Accrual accounting
accounting