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Entrepreneurs Consultants, a state agency, was established to provide consulting services to small businesses. It main - tains only a single general fund and accounts
Entrepreneurs Consultants, a state agency, was established
to provide consulting services to small businesses. It main
tains only a single general fund and accounts for its activities
on a modified accrual basis.
During its first month of operations, the association engaged
in or was affected by the following transactions and events:
It received an unassigned grant of $
It purchased five computers at $ each.
It paid wages and salaries of $
Borrowed from the bank via a longterm note for the automobile.
It purchased the automobile for $
It made its first payment on the note
interest of $
It destroyed one of its computers in an accident. The
computer was not insured.
b Prepare a balance sheet and a statement of reve
nues and expenditures for the general fund.
Assume the following account balance at the beginning of the month or year
Cash
Fund Balance
Closing Journal Entries
Debit Credit
Grant Rev
Loan Proceeds
Fund Balance
Fund Balance
Computer Expenditure
W & S Expenditure
Auto Expenditure
Interest Expenditure
Journal Entries
Debit Credit
Cash
Grant Rev
Computer Expenditure
Cash
Salaries and Wage Expense
Cash
Cash
Loan Proceeds
Automobiles Expenditure
Cash
Interest Expenditure
Cash
No Journal Entries
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