Q1 write in your own words elaborating about the following points (3 Points)

A- Contrast revenue recognition under the accrual and modified accrual bases of accounting.

B- Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of long-term debt.

C- Under the accrual basis of accounting expenses are recorded when they are incurred, while under the modified accrual basis expenditures are recognized Generally when incurred, explain why the Author used the word Generally ?

Q2 Free balance Vs. Unexpended balance (7 Points)

Charlotte City approves the purchase of two snowplow machines from John Deere Company for an estimated price of $500,000 as $250,000 for each. On Jan.10th the first snowplow machine been ordered, on Jan. 21st the machine arrived with an invoice of $246,000. On November5th the second machine been ordered, the second machine arrived on Dec. 15th along with an invoice of $252,000. Please calculate the following as shown on the specified dates below:

	Jan. 15	Jan. 28	Nov. 10	Dec. 20
Unexpended balance
Un-encumbered (free) balance

Q3 (10 Points)

The following budget and transactions relate to the General Fund of the Village of Buffalo Falls for the year ended December 31, 2017:

Estimated revenues
Property tax	400,000
Sales tax	350,000
Fines and penalties	250,000
Rental charges	200,000
Appropriations
services	120,000
Travel & Transportations	110,000
Equipments	380,000
Supplies	60,000
Salaries	430,000

If you know that property ownership in the village belongs to four property owners as below:

Edward	140,000
Arthur	120,000
Harrison	80,000
Teddy	60,000

1. During the year taxes were collected in property $60,000 from Edward, $120,000 from Arthur, $60,000 from Teddy, $50,000 from Harrison.

2. Due to a change in economic conditions the village budget committee expect an increase in sales taxes in amount of $50,000.

3. A contract was signed with a CPA to provide the annual audit in the amount of $15,200.

4. Contracted services were performed to the village with invoices amounting to $100,000.

5. The village contracted to have alarm systems (Equipments) installed in the administration building at a cost of $46,000. The systems were installed and the amount was paid.

6. the village ordered different equipments during the year in amount of $320,000.

7. The equipment arrived with an invoice in amount of $325,000.

8. The village paid out salaries in amount of $430,000 to the employees

9. The Village accounting department received from the boardmembers and managers invoices for travel and transportations in amount of $105,000.

10. The village purchased supplies in amount of $60,000 and then paid out to the suppliers two thirds of the amount in cash.

11. The village collected taxes in amount of $395,000 during the year, $270,000 from fines and penalties, $200,000 from rental of its warehouses.

Requirements: record the journal entries related to the budget at the beginning of the year, set up property tax receivables, journalize the transactions above. Then closing entries.