(Accounting cycle for 1 month)

The Star Exploration Agency, a unit of the Space Department, was established by Congress to begin operations at the beginning of FY 2004. Following are the agency's transactions during October, its first month of operations:

October 1 Congress passed and the president approved a $\$ 1,000,000$ appropriation for this agency for FY 2004.

October 1 Of the amount appropriated, $\$ 950,000$ was apportioned by OMB.

October 1 The Space Department allotted the agency $\$ 100,000$ to carry out its October operations.
October 1 Purchase requests were made for materials and telescopes, estimated to cost $\$ 88,000$.
October 4 Purchase orders were placed for materials and telescopes, estimated to cost $\$ 85,000$.
October 10 Materials and telescopes previously ordered were received, together with invoices for $\$ 88,000$ ( $\$ 70,000$ for materials and $\$ 18,000$ for telescopes). The agency accepted the items despite the higher price. All the items were considered as program expenses because they would be consumed within 1 year.
October 14 A disbursement schedule was sent to the Treasury, requesting that it pay invoices amounting to $\$ 60,000$.
October 31 The Treasury informed the agency that it had paid invoices amounting to $\$ 55,000$. It also told the agency it had issued checks in the amount of $\$ 10,000$ for October salaries.
Required: 1. Prepare journal entries to record the events of October.
2. Post the journal entries.
3. Prepare a preclosing trial balance.
4. Prepare appropriate closing entries. (Hint: Do not close out the budgetary accounts.)
5. Prepare a postclosing trial balance.
6. Prepare the following month-end statements:

a. Balance sheet

b. Statement of net costs

c. Statement of changes in net position

d. Statement of budgetary resources (Note: Consider amounts not yet allotted as balances not available.)