Quiz 6: Expenditure Accountinggovernmental Funds
1. E 2. F - reported as a capital outlay expenditure by the SRF 3. C 4. F - reported as a general long-term liability until paid 5. F - Balance Sheet liability 6. F - not accrued 7. A 8. A 9. F - Balance Sheet liability 10. F - reported as an encumbrance until received 11. A 12. F - expenditure reported when received 13. F - reported as an encumbrance until received 14. F - Other financing source 15. F - Balance Sheet asset 16. A 17. D 18. A 19. E 20. F - reduction of Balance Sheet liability 21. G - A 22. E 23. F - general long-term liability 24. A 25. A 26. F - Other financing use - transfer
A1. Consumption method journal entries (assuming perpetual inventory system). A2. Effects of journal entries on the Balance Sheet equation using regular entries (perpetual inventory system) Note: Since the effects for Deferred Outflows and Deferred Inflows are all NE, you may choose to omit those columns. Effects of journal entries on the Balance Sheet equation using regular entries (periodic inventory system). A3. Financial Statement Reporting Balance Sheet Asset - Inventory 150 Fund Balance - Nonspendable 150 Operating Statement Expenditures - Operating 2,870 B1. Purchases method journal entries B2. Effects of journal entries on the Balance Sheet equation B3. Financial Statement Reporting Balance Sheet Asset - Inventory 150 Fund Balance - Nonspendable 150 Operating Statement Expenditures - Operating 2,920 Other Financing Source - Increase in Inventory 50
"1. Journal Entries " "2. Effects on accounting equations for the General Fund and the General Capital Assets and General Long-Term Liabilities accounts. *A government might choose to record interest payable (and the related interest expense) in the GLTL accounts but that is not presumed here. Likewise, GCA could be reduced by accumulated depreciation and net position by depreciation expense but insufficient information is provided to permit this." "3. Capital lease reporting in the General Fund Financial Statements Balance Sheet - no effect other than a lower cash balance. No asset or liability to report. Operating Statement - as noted in the journal entry, Capital Outlay expenditure of $5,000 and OFS for capital lease of $4,500 will be reported, netting to a $500 decrease in the change in fund balance."