• P11-2(Accounting cycle for 1 month)
• The Star Exploration Agency, a unit of the Space Department, was established by Congress to begin operations at the beginning of fiscal year 2014. Following are the agency's transactions during October, its first month of operations:
  • October 1Congress passed and the president approved a $1,000,000 appropriation for this agency.
  • October 1Of the amount appropriated, $950,000 was apportioned by the OMB.
  • October 1The Space Department allotted the agency $100,000 to carry out its October operations.
  • October 1Purchase requests were made for materials and supplies, estimated to cost $88,000.
  • October 4Purchase orders were placed for materials and supplies, estimated to cost $85,000. The other requests (for $3,000) were cancelled.
  • October 10Materials and supplies previously ordered were received, together with invoices for $80,000. All items received were placed in inventory. The remaining items (for $5,000) will be received at a later date.
  • October 14A disbursement schedule was sent to the Treasury, requesting that it pay invoices amounting to $80,000.
  • October 24The Treasury informed the agency that it had paid invoices amounting to $76,000.
  • October 31An inventory count showed that $15,000 of materials and supplies was on hand. The rest was used in operations.
• Use the preceding information to do the following:
• a.Prepare journal entries to record the events of October.
• b.Prepare a preclosing trial balance.
• c.Prepare the following month-end statements: balance sheet, statement of net costs, statement of changes in net position, and statement of budgetary resources

E11-9 Journal Entries Account Name 1 Budgetary entry: Budgetary Other appropriations realized DR 400,000 Unapportioned authority To record receipt of appropriation authority. Proprietary entry: Proprietary Fund Balance with Treasury Unexpended appropriationsappropriations received To record receipt of appropriation warrant. 2 Budgetary entry: Budgetary Unapportioned authority Apportionments To record apportionment of resources by OMB. CR 400,000 400,000 400,000 400,000 400,000 Proprietary entry: none 3 Budgetary entry: Budgetary Apportionments Allotments - realized resources To record allotment of resources to finance operations. 400,000 400,000 Proprietary entry: None 4 Budgetary entry: Budgetary Allotments-realized resources Commitments To record request for materials. 390,000 390,000 Proprietary entry: None 5 Budgetary entry: Budgetary Commitments Undelivered ordersobligations, unpaid To obligate funds for materials ordered. 375,000 375,000 Proprietary entry: NONE 6 Budgetary entry: Budgetary Undelivered orders-obligations, unpaid Delivered ordersobligations, unpaid To record acceptance of delivery. Proprietary entry: Operating materials and supplies held for use Accounts payable To record acceptance of materials Unexpended appropriationsused Expended appropriations To record financing of materials purchased. 7 Budgetary entry: None Proprietary entry: Proprietary Program costs - materials Operating materials and supplies held for use To record materials used in operations. 360,000 360,000 360,000 360,000 360,000 360,000 360,000 140,000 140,000 8 Budgetary entry: Proprietary entry: Proprietary accounts payable Disbursements in transit To record request to Treasury for check. 360,000 360,000 9 Budgetary entry: Budgetary Delived orders-obligations unpaid Delivered orders-obligations paid To record confirmed payment by Treasury. Proprietary entry: Proprietary - disbursements in transit Fund balance with Treasury To record confirmed payment by Treasury 360,000 360,000 360,000 360,000 Trial Balance Central Think Tank Preclosing Trial Balance - Budgetary Accounts 30-Sep-13 DR Other appropriations realized Allotments - realized resources Commitments Undelivered orders - obligations unpaid Delivered orders - obligations paid Total CR 10,000 390,000 375,000 15,000 $ 400,000 $ 400,000 Central Think Tank Statement of Budgetary Resources For the Year Ended September 30, 2013 Budgetary Resources Appropriations Total budgetary resources 400,000 400,000 Status of Budgetary Resources: Obligations Incurred Unobligated balances - not available Total status of budgetary resources 375,000 15,000 400,000 Change in Obligated Balance: Unpaid obligations - beginning of period Obligations Incurred Less: Gross Outlays Unpaid obligations balance, end of period 375,000 360,000 15,000 Net (and gross) outlays $ 360,000 P11-2 - Journal Entries Account Name 1-Oct Budgetary entry: Budgetary Other appropriations realized Unapportioned authority To record receipt of appropriation authority Proprietary entry: Proprietary Fud Balance with Treasury Unexpended appropriations-appropriations received To record receipt of appropriation warrant 1-Oct Budgetary entry: Budgetary Unapportioned authority Apportionments To record apportionment of resources by OMB DR CR 1,000,000 1,000,000 1,000,000 1,000,000 950,000 950,000 Proprietary entry: None 1-Oct Budgetary entry: Budgetary Apportionments Allotments - realized resources To record allotment of resources to finance operations 100,000 100,000 Proprietary entry: None 1-Oct Budgetary entry: Budgetary Allotments-realized resources Commitments To record request for materials 88,000 88,000 Proprietary entry: None 4-Oct Budgetary entry: Budetary Commitments Undelivered orders-obligations unpaid To obligate funds for materials ordered 85,000 85,000 Proprietary entry: None 10-Oct Budgetary entry: Budgetary Undelivered orders-obligations, unpaid Delivered orders-obligations unpaid To record acceptance of delivery Proprietary entries: Operatinjg materials and supplies held for use Accounts Payable To record acceptance of materials Unexpended appropriations-used Expended appropriations To record financing of materials purchased 80,000 80,000 80,000 80,000 80,000 14-Oct Budgetary entry: None Proprietary entry: Proprietary Program costs-materials Operating materials and supplies held for use To record materials used in operations 24-Oct Budgetary entry: 80,000 80,000 Proprietary entry: 31-Oct Budgetary entry: Proprietary entry: Trial Balance Star Exploration Agency Preclosing Trial Balance - Budgetary Accounts 31-Oct-13 DR Budgetary Accounts Other appropriations realized Unapportioned authority Apportionments Allotments - realized resources Undelivered orders - obligations unpaid Delivered orders - obligations unpaid Delivered orders - obligations paid Total Proprietary Accounts Fund balance with Treasury Operating materials and supplies held for use Disbursements in transit Unexpended appropriations - appropriations received Unexpended appropriations - used Expended appropriations Program costs - materials and supplies Total CR P11-2 Financial Statements Star Exploration Agency Balance Sheet 31-Oct-13 Assets: #1 #2 #3 Total assets Liabilities and Net Position Liabilities: #1 Total Liabilities Net Position: #1 #2 Net Position Total Liabilities and Net Position 935,000 Star Exploration Agency Statement of Net Costs For the month of October, 2013 Program Costs: #1 Net cost of operations Star Exploration Agency Statement of Changes in Net Position For Month Ended October 31, 2013 Cumulative Results of Operations #1 Budgetary financing sources: #1 Net cost of operations Net change Cumulative Results of Operations Unexpended appropriations: #1 #2 #3 Total Unexpended Appropriations Net Position, end of period $ 935,000 Star Exploration Agency Statement of Budgetary Resources For Month Ended October 31, 2013 Budgetary Resources Appropriations Total budgetary resources Status of Budgetary Resources: Obligations Incurred Unobligated balances available for obligation Unobligated balances - not available Total status of budgetary resources Change in Obligated Balance: Obligations Incurred Less: Gross Outlays Unpaid obligations balance, end of period Net (and gross) outlays $ 76,000