Following is a trial balance of the accounts of the Bureau of Bridge Inspection $($BOBI$),$ a relatively new unit of the Department of Transportation $($DOT$),$ as of October $1,2013.$

Budgetary accounts:

Total actual resources$-$collected

Delivered orders$-$obligations, unpaid Totals

Proprietary accounts:

Fund balance with Treasury

Inventory, materials, and supplies

General property, plant, and equipment

Disbursements in transit

Cumulative results of operations

Totals

BOBI is responsible for overseeing state inspections of bridges constructed with federal funds. It reports program expenses by object of account. BOBI does not use commitment accounting, but does obligate budgetary resources when it enters into contracts or sends purchase orders to buy capital assets and supplies and materials. It also obligates resources for operating leases. The following transactions occurred during the month of October $2013$:

Congress appropriated $$2,000,000$ for BOBI's bridge inspection program activities in fiscal year $2014.$

OMB notified DOT that it had apportioned the entire amount of BOBI's appropriation.

DOT notified BOBI that it had allotted $$500,000$ of its appropriation for the first quarter of fiscal year $2014.$

During the month of October, BOBI entered into the following contracts:

For testing equipment

For materials and supplies

$$100,000$

$50,000$

BOBI also obligated the full amount of its operating lease payments $($$$90,000)$ for the first quarter of $2014.$

Treasury advised BOBI that it paid the $$20,000$ invoice that BOBI had forwarded for payment before October $1,2013.$

BOBI received the materials and supplies ordered in transaction $4.$ However, the invoice was for $$52,000$ because the supplier sent additional supplies, as permitted by the contract. BOBI accepted the entire shipment. BOBI also recorded as a liability the $$30,000$ rent due October $1.$

BOBI sent a disbursement schedule to Treasury requesting the following payments:

For materials and supplies $$52,000$

For rent

$30,000$

Chapter $11-$ Federal Government Accounting and Reporting

$43$:

BOBI sent a disbursement schedule to Treasury requesting salary checks totaling $$90,000.$

Treasury advised BOBI that it had made payments totaling $$172,000,$ pursuant to the schedules forwarded by BOBI in transactions $7$ and $8.$

To prepare accrual$-$basis financial statements for the month of October, BOBI made adjusting journal entries for the following items:

a$.$ To accrue salaries earned in October but not paid$-$ $$10,000$

b$.$ To record materials and supplies used $-$$$12,000$

c$.$ To record $1$ month's depreciation on equipment $-$$$1,000$

Use the preceding information to do the following:

a$.$ Prepare journal entries to record the foregoing transactions and events.

b$.$ Prepare a preclosing trial balance based on transaction $1.$

c$.$ Prepare a balance sheet, a statement of net costs, and a statement of changes in net position.