Expenditure expense accruals A city was incorporated as of January 1, 2019 It is preparing its first set of financial statements as of December 31, 2019, and is examining transactions and events affecting its General Fund to see if any accruals need to be made Based on the following data, prepare journal entries to record (a) accruals needed to prepare the citys governmental fund financial statements and (b) the additional worksheet adjustments needed to prepare the citys government wide financial statements Salaries for the period ended December 31, 2019, and totaling $25,000 will be paid in early January, 2020 The city permits its employees to receive cash for unused accumulated vacation pay when they retire or are terminated By December 31, 2019, active employees had accumulated vacation pay totaling $14,000, but none was due and payable at year end Newly hired sanitation employees accidentally sideswiped several vehicles The vehicle owners filed claims The city settled one claim for $2,000 in December, 2019 and to be paid in early January, 2020 The city attorney believes that it is probable the remaining claim will be settled for about $10,000, but there is no indication of when it will be settled The city agrees to provide other postemployment healthcare benefits to its retirees on a pay as you go basis The city has no retirees and therefore no amounts currently due and payable to retirees for healthcare costs The actuarially calculated net OPEB liability, however, is $18,000 (a) Prepare journal entries to record accruals needed to prepare the city's governmental fund financial statements If a journal entry is not required for the transaction event, select No entry as your answers and leave the Debit and Credit answers blank (zero) Credit Ref 1 Debit 25000 Description Expenditures salaries Accrued salaries payable Accrued vacation pay 25000 2 3 2,000 Expenditures claims and judgments Accrued claims payable 2,000 (b) Prepare journal entries to record the additional worksheet adjustments needed to prepare the city's government wide financial statements If a journal entry is not required for the transaction event, select No entry as your answers and leave the Debit and Credit answers blank (zero) Ref Description Debit Credit

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Expenditure/expense accruals A city was incorporated as of January 1, 2019. It is preparing its first set of financial statements as of December 31, 2019,

Expenditure/expense accruals

A city was incorporated as of January 1, 2019. It is preparing its first set of financial statements as of December 31, 2019, and is examining transactions and events affecting its General Fund to see if any accruals need to be made. Based on the following data, prepare journal entries to record (a) accruals needed to prepare the citys governmental fund financial statements and (b) the additional worksheet adjustments needed to prepare the citys government-wide financial statements.

Salaries for the period ended December 31, 2019, and totaling $25,000 will be paid in early January, 2020.
The city permits its employees to receive cash for unused accumulated vacation pay when they retire or are terminated. By December 31, 2019, active employees had accumulated vacation pay totaling $14,000, but none was due and payable at year end.
Newly-hired sanitation employees accidentally sideswiped several vehicles. The vehicle owners filed claims. The city settled one claim for $2,000 in December, 2019 and to be paid in early January, 2020. The city attorney believes that it is probable the remaining claim will be settled for about $10,000, but there is no indication of when it will be settled.
The city agrees to provide other postemployment healthcare benefits to its retirees on a pay-as-you-go basis. The city has no retirees and therefore no amounts currently due and payable to retirees for healthcare costs. The actuarially calculated net OPEB liability, however, is $18,000.

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(a) Prepare journal entries to record accruals needed to prepare the city's governmental fund financial statements. If a journal entry is not required for the transaction/event, select No entry as your answers and leave the Debit and Credit answers blank (zero). Credit Ref 1 Debit 25000 Description Expenditures - salaries Accrued salaries payable Accrued vacation pay 25000 2 3 . 2,000 Expenditures - claims and judgments Accrued claims payable 2,000 (b) Prepare journal entries to record the additional worksheet adjustments needed to prepare the city's government-wide financial statements. If a journal entry is not required for the transaction/event, select No entry as your answers and leave the Debit and Credit answers blank (zero). Ref Description Debit Credit