(Federal accounting cycle)} Geological Resources Agency is an agency within the Department of Resources. The following transactions...
Question:
(Federal accounting cycle)}
Geological Resources Agency is an agency within the Department of Resources. The following transactions took place in October, the first month of FY 2005.
1. The Agency was notified that its FY 2005 appropriation was $\$ 2,500,000$.
2. OMB apportioned $\$ 600,000$ to the Department of Resources for the first quarter of the fiscal year.
3. The Department of Resources' CEO allotted $\$ 200,000$ to the Agency for its October operations.
4. Purchase orders placed during the month for materials and supplies were $\$ 150,000$. (The Agency does not use commitment accounting.) The materials and supplies arrived during the month, along with an invoice for $\$ 148,000$.
5. Materials costing $\$ 100,000$ and supplies costing $\$ 20,000$ were used during the month. In addition, salaries amounting to $\$ 48,000$ were paid on the last day of the month.
6. A disbursement schedule was sent to the Treasury ordering payment for the materials and supplies.
Required: Make appropriate journal entries to record these transactions.
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