Please find attached the assignment details. There are 3 problems...

Graded Problem Chapter 3 Problem # 1 The transactions that follow relate to the Danville County Comptroller's Department over a two-year period. Year 1 The county appropriated $36,000 for employee education and training. The department signed contracts with outside consultants to conduct accounting and auditing workshops. Total cost was $30,000. The consultants conducted the workshops and were paid $30,000. The department ordered books and training materials, which it estimated would cost $5,400. As of year-end, the materials had not been received. Year 2 The county appropriated $40,500 for employee education and training. The department received and paid for the books and training materials that it ordered the previous year. Actual cost was only $5,100. The county's accounting policies require that the books and training materials be charged as an expenditure when they are received (as opposed to being recorded as inventory and charged as an expenditure when used). It authorized employees to attend various conferences and training sessions. Estimated cost was $31,000. Employees submitted $32,400 in reimbursement requests for the conferences and training sessions they attended. The department paid them the requested amounts and at year-end did not expect to receive any additional reimbursement requests. 1. Prepare all required journal entries that would affect the expenditure subaccount ''education and training,'' including budgetary and closing entries. Assume that all appropriations lapse at year-end (thus, all expenditures in Year 2 would be charged against that year's appropriation of $40,500, even if the goods and services were ordered in Year 1). 2. Indicate (specifying accounts and dollar amounts) how the transactions would be reported in the county's general fund: a. Balance sheet b. Statement of revenues and expenditures 3. Alternatively, suppose that the county did not record its budget and did not encumber its commitments. What would be the difference in the year-end nancial statements? 4. Assume instead that appropriations for goods on order at year-end do not lapse. When the goods are received they are charged as expenditures against Graded Problem Chapter 3 the budget of the year in which they were encumbered. How would this change affect your entries and the year end nancial statements? How would it affect the amount that the department had available to spend in Year 2 on goods or services not previously ordered? Problem # 2 The following information was drawn from a county's general fund budgets and accounts for a particular year (in millions): You also learn the following: Graded Problem Chapter 3 For purposes of budgeting, the county recognizes encumbrances as the equivalent of expenditures in the year established; for nancial reporting, it recognizes expenditures when the goods or services are received, as required by GAAP. For purposes of budgeting, it recognizes supplies expenditures when the supplies are acquired for nancial reporting, it recognizes the expenditure when the supplies are consumed. For purposes of budgeting, it recognizes wages and salaries when paid; for nancial reporting, it recognizes the expenditures when the employees perform their services. For purposes of budgeting, it recognizes as revenues only taxes actually collected during the year; for nancial reporting, it recognizes taxes expected to be collected within the rst sixty days of the following year. 1. Prepare the following four separate schedules in which you compare the budget-to-actual results and compute the budget variance. You need to present only the total revenues, total expenditures, and excess of revenues over expenditures. a. Actual results on a budget basis to the amended budget b. Actual results on a budget basis to the original budget c. Actual results as would be reected in the nancial statements to the amended budget restated so that it is on a nancial reporting basis d. Actual results as would be reected in the nancial statements to the original budget restated so that it is on a nancial reporting basis 2. The county executive has boasted that the ''better than anticipated results'' (based on the comparison of the schedule that appears in the nancial statements) are evidence of ''sound scal management and effective cost controls'' on the part of the county administration. Do you agree? 3. Which of the three schedules best demonstrates legal compliance? Explain. 4. Which schedule best demonstrates effective management? Explain. Graded Problem Chapter 3 Problem # 3 The data presented below were taken from the books and records of the Village of Maxieville. All amounts are in millions. The village encumbers all outlays. As is evident from the data, some goods or services that were ordered and encumbered have not yet been received. City regulations require that all appropriations lapse at yearend. 1. Prepare summary entries to record A. the budget B. the encumbrance of the goods and services C. the receipt of the goods and services. All invoices were paid in cash. D. the actual revenues (all cash receipts) 2. Prepare summary entries to close the accounts 3. What would be the year-end? A. fund balance (unassigned) B. Reserve for encumbrance balance (irrespective of how classied) 4. Prepare a schedule in which you compare budgeted to actual revenues and expenditures. Graded Problem Chapter 3 5. A citizen reviews the budget to actual schedule that you have prepared. She comments on the rather substantial favorable variance between budgeted and actual expenditures and questions why the government did not spend the full amount of money that it appropriated. Briey explain to her the nature of the variance. Graded Problem Chapter 3 Problem # 1 The transactions that follow relate to the Danville County Comptroller's Department over a two-year period. Year 1 The county appropriated $36,000 for employee education and training. The department signed contracts with outside consultants to conduct accounting and auditing workshops. Total cost was $30,000. The consultants conducted the workshops and were paid $30,000. The department ordered books and training materials, which it estimated would cost $5,400. As of year-end, the materials had not been received. Year 2 The county appropriated $40,500 for employee education and training. The department received and paid for the books and training materials that it ordered the previous year. Actual cost was only $5,100. The county's accounting policies require that the books and training materials be charged as an expenditure when they are received (as opposed to being recorded as inventory and charged as an expenditure when used). It authorized employees to attend various conferences and training sessions. Estimated cost was $31,000. Employees submitted $32,400 in reimbursement requests for the conferences and training sessions they attended. The department paid them the requested amounts and at year-end did not expect to receive any additional reimbursement requests. 1. Prepare all required journal entries that would affect the expenditure subaccount ''education and training,'' including budgetary and closing entries. Assume that all appropriations lapse at year-end (thus, all expenditures in Year 2 would be charged against that year's appropriation of $40,500, even if the goods and services were ordered in Year 1). 2. Indicate (specifying accounts and dollar amounts) how the transactions would be reported in the county's general fund: a. Balance sheet b. Statement of revenues and expenditures 3. Alternatively, suppose that the county did not record its budget and did not encumber its commitments. What would be the difference in the year-end nancial statements? 4. Assume instead that appropriations for goods on order at year-end do not lapse. When the goods are received they are charged as expenditures against Graded Problem Chapter 3 the budget of the year in which they were encumbered. How would this change affect your entries and the year end nancial statements? How would it affect the amount that the department had available to spend in Year 2 on goods or services not previously ordered? Problem # 2 The following information was drawn from a county's general fund budgets and accounts for a particular year (in millions): You also learn the following: Graded Problem Chapter 3 For purposes of budgeting, the county recognizes encumbrances as the equivalent of expenditures in the year established; for nancial reporting, it recognizes expenditures when the goods or services are received, as required by GAAP. For purposes of budgeting, it recognizes supplies expenditures when the supplies are acquired for nancial reporting, it recognizes the expenditure when the supplies are consumed. For purposes of budgeting, it recognizes wages and salaries when paid; for nancial reporting, it recognizes the expenditures when the employees perform their services. For purposes of budgeting, it recognizes as revenues only taxes actually collected during the year; for nancial reporting, it recognizes taxes expected to be collected within the rst sixty days of the following year. 1. Prepare the following four separate schedules in which you compare the budget-to-actual results and compute the budget variance. You need to present only the total revenues, total expenditures, and excess of revenues over expenditures. a. Actual results on a budget basis to the amended budget b. Actual results on a budget basis to the original budget c. Actual results as would be reected in the nancial statements to the amended budget restated so that it is on a nancial reporting basis d. Actual results as would be reected in the nancial statements to the original budget restated so that it is on a nancial reporting basis 2. The county executive has boasted that the ''better than anticipated results'' (based on the comparison of the schedule that appears in the nancial statements) are evidence of ''sound scal management and effective cost controls'' on the part of the county administration. Do you agree? 3. Which of the three schedules best demonstrates legal compliance? Explain. 4. Which schedule best demonstrates effective management? Explain. Graded Problem Chapter 3 Problem # 3 The data presented below were taken from the books and records of the Village of Maxieville. All amounts are in millions. The village encumbers all outlays. As is evident from the data, some goods or services that were ordered and encumbered have not yet been received. City regulations require that all appropriations lapse at yearend. 1. Prepare summary entries to record A. the budget B. the encumbrance of the goods and services C. the receipt of the goods and services. All invoices were paid in cash. D. the actual revenues (all cash receipts) 2. Prepare summary entries to close the accounts 3. What would be the year-end? A. fund balance (unassigned) B. Reserve for encumbrance balance (irrespective of how classied) 4. Prepare a schedule in which you compare budgeted to actual revenues and expenditures. Graded Problem Chapter 3 5. A citizen reviews the budget to actual schedule that you have prepared. She comments on the rather substantial favorable variance between budgeted and actual expenditures and questions why the government did not spend the full amount of money that it appropriated. Briey explain to her the nature of the variance