Problem 1

Use the information provided to complete the steps in the box below.

Below is the September 30, 2018, trial balance for the United States Government.

Post-closing Trial Balance September 30 of Fiscal Year 2018 (Amounts in thousands of dollars)
Budgetary Accounts:
Total Actual Resources Collected	$ 16
Undelivered OrdersPrepaid		$ 14
AllotmentsExpired Authority		2
	$ 16	$ 16
Proprietary Accounts:
Fund Balance with Treasury20X8	$165
Advances to Others	18
Inventory for Agency Operations	80
Equipment	315
Accumulated Depreciation on Equipment		$137
Disbursements in Transit		35
Accounts Payable		62
Accrued Funded Payroll and Benefits		70
Accrued Unfunded Annual Leave		215
Unexpended Appropriations20X8		18
Cumulative Results of Operations		41
	$578	$578

The agency applies the following accounting policies:

Commitment accounting is used only for fixed assets, inventories for agency operations, and services.

Salaries and benefits do not have undelivered orders placed in advance of expending the appropriation for them.

All disbursements except for salaries, benefits, and advances to others must have accounts payable established first.

Following are transactions during fiscal year 2019. All are in thousands of dollars.

The agency received an appropriation warrant from the Treasury in the amount of $32,000, notifying the agency that its appropriation had been enacted in that amount. The enabling legislation specified that $8,000 was for salaries and benefits, $5,000 was for travel, and $19,000 was for fixed assets, materials, and services.

The OMB apportioned the entire appropriation during the year.

The agency head allotted $7,500 for salaries and benefits, $6,500 for travel, and $14,000 for fixed assets, inventory, and supplies.

The Treasury notified the agency that the checks ordered but not issued in fiscal year 2018 were issued.

5. The following were included:

A. Travel orders in the amount of $5,500 were issued.

B. Checks for travel advances totaling $4,000 were requested from the Treasury.

C. The Treasury notified the agency that the checks ordered for the travel advances were issued.

D. Travel vouchers in the amount of $2,500 were received, including $350 for which travel orders had not been issued. Advances of $975 were to be applied.

E. Checks to pay the travel claims not previously advanced were ordered from the Treasury.

F. The advances related to fiscal year 2018 were repaid by employees.

G. The Treasury notified the agency that the checks ordered in (e) were issued.

6. The following information was provided:

A. The agency head allotted the remaining payroll budget.

B. Payroll paid during the year, including the agencys share of expenses, amounted to $9,025. Ignore withholding deductions and omit going through the disbursements in transit account. Remember that $70 was included in year 2018 Expended Appropriations and is accrued.

7. The following information was provided:

A. Commitments were placed for $15,000 of fixed assets, inventory, and services.

B. The agency head allotted an additional $350 for fixed assets, inventory, and services.

C. Orders were placed for $14,700 of fixed assets, inventory, and services. Of those, $14,200 had previously been committed in the amount of $14,450. Because of failure to follow procedures, the remaining $500 had not been previously committed.

D. Orders in (c) were received and approved, as follows:

	Estimated	Actual
Equipment	$ 3,000	$ 3,300
Inventory	600	540
Services Used	10,875	10,800
	$14,475	$14,640

1. Checks for accounts payable of $14,000 were requested from the Treasury during the year, including those related to fiscal year 2018. The Treasury notified the agency that checks amounting to $13,950 were issued during fiscal year 2019, including those relating to fiscal year 2018 accounts payable.
2. The following year-end information was compiled:
   1. Depreciation of equipment amounted to $40.
   2. Salaries and benefits other than annual leave to be accrued amounted to $65.
   3. According to a report from the payroll department, the annual leave liability at fiscal year-end was $220.
   4. A physical count of inventory indicated that $160 of inventory had been used.

Required Steps

1. Prepare the general journal entries required for the United States Government for fiscal year 2019.
2. Post the entries to T-accounts.
3. Prepare a preclosing trial balance for September 30, 2019.
4. Close the accounts.