(Accounting cycle for 1 month)} The Federal Commission on Governmental Performance was formed on October 1, 2004....
Question:
(Accounting cycle for 1 month)}
The Federal Commission on Governmental Performance was formed on October 1, 2004. This agency does not use commitment accounting. Among the transactions that took place that year were the following:
1. An appropriation of $\$ 6,500,000$ was passed by the Congress and approved by the president. The resources are to be used for operating purposes.
2. The OMB notified the Department of Administration, of which the agency is a part, of the following schedule of apportionments:
3. The Department of Administration allotted $\$ 700,000$ to the commission for its operations in October.
4. Purchase orders were placed in October for the following:
5. The payroll for the first 2 weeks of October amounted to $\$ 200,000$. It was paid on October 15.
6. Invoices approved by the agency for payment were as follows:
The Treasury informed the commission that the invoices from XYZ Widget and L \& K Supply were paid in full and one-half of the Scrooge Realty bill had been paid. Supplies and rent are expensed upon approval for payment. Materials are inventoried when purchased and expensed when used.
7. The payroll for the remainder of October was $\$ 200,000$. It was paid on October 31.
8. Materials costing $\$ 85,000$ were used during October.
Required: 1. Prepare appropriate journal entries for the transactions of October 2004 .
2. Prepare appropriate monthly closing entries. (Hint: Do not close out the budgetary accounts.)
3. Prepare the following month-end statements:
a. Balance sheet
b. Statement of net costs
c. Statement of changes in net position
d. Statement of financing
e. Statement of budgetary resources (Note: Consider amounts not yet allotted as balances not available.)
Step by Step Answer:
Introduction To Government And Not For Profit Accounting
ISBN: 9780130464149
5th Edition
Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch