Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 20X9. All are in thousands of dollars.
- The agency received an appropriation warrant from the Treasury in the amount of $30,000, notifying the agency that its appropriation had been enacted in that amount. The enabling legislation specified that $9,000 was for salaries and benefits, $6,000 was for travel, and $15,000 was for fixed assets, materials, and services.
- The OMB apportioned the entire appropriation during the year.
- The agency head allotted $8,700 for salaries and benefits, $6,000 for travel, and $14,450 for fixed assets, inventory, and supplies.
- The Treasury notified the agency that the checks ordered but not issued in fiscal year 20X8 were issued.
- Travel orders in the amount of $5,400 were issued.
- Checks for travel advances totaling $3,000 were requested from the Treasury.
- The Treasury notified the agency that the checks ordered for the travel advances were issued.
- Travel vouchers in the amount of $2,700 were received, including $375 for which travel orders had not been issued. Advances of $970 were to be applied.
- Checks to pay the travel claims not previously advanced were ordered from the Treasury.
- The advances related to fiscal year 20X8 were repaid by employees.
- The Treasury notified the agency that the checks ordered in (e) were issued.
- The agency head allotted the remaining payroll budget.
- Payroll paid during the year, including the agency's share of expenses, amounted to $9,015. Ignore withholding deductions and omit going through the disbursements in transit account. Remember that $75 was included in year 20X8 Expended Appropriations and is accrued.
- Commitments were placed for $14,450 of fixed assets, inventory, and services.
- The agency head allotted an additional $300 for fixed assets, inventory, and services.
- Orders were placed for $14,700 of fixed assets, inventory, and services. Of those, $14,250 had previously been committed in the amount of $14,400. Because of failure to follow procedures, the remaining $450 had not been previously committed.
- Orders in (c) were received and approved, as follows:
With the following information:
Create general journal entries required for ABC Agency for fiscal year 20X9.
Post the entries to T-accounts.
Create a preclosing trial balance for September 30, 20X9.
Close the accounts.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started