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In accounting for governmental units, entries are made for encumbrances. This is not done in accounting for-profit companies. Part a (10 points). Explain the sequence
In accounting for governmental units, entries are made for encumbrances. This is not done in accounting for-profit companies. Part a (10 points). Explain the sequence of entry to purchase office supplies by a governmental entity. Using Illustration 17-5 from the text (copied here) explain the terminology of each of the terms in the column headings. Also provide an explanation for how the transaction is recorded and why the 10,000,t 12,000 , and the 2,000 entries are made the way that they are done. ILLUSTRATION 17-5 Subsidiary Ledger Control Card for One Budget Category Function: Sanitation; Activity: Sanitary Sewer Cleaning; Object: Operating Supplies Part b (10 points). Why are encumbrances used as part of actual recorded accounting entries in governmental entities? In accounting for governmental units, entries are made for encumbrances. This is not done in accounting for-profit companies. Part a (10 points). Explain the sequence of entry to purchase office supplies by a governmental entity. Using Illustration 17-5 from the text (copied here) explain the terminology of each of the terms in the column headings. Also provide an explanation for how the transaction is recorded and why the 10,000,t 12,000 , and the 2,000 entries are made the way that they are done. ILLUSTRATION 17-5 Subsidiary Ledger Control Card for One Budget Category Function: Sanitation; Activity: Sanitary Sewer Cleaning; Object: Operating Supplies Part b (10 points). Why are encumbrances used as part of actual recorded accounting entries in governmental entities
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