Question
The State of Monogahela adopted a budget for its general fund for the year. The following amounts are relevant: Estimated total sales taxes to be
The State of Monogahela adopted a budget for its general fund for the year. The following amounts are relevant:
Estimated total sales taxes to be collected$100,000,000Estimated total to be spent92,000,000Amount authorized for retirement of debt1,000,000Amount authorized to subsidize state agency telecommunications1,000,000
At the end of the fiscal year, $8.4 million in encumbrances were outstanding, but the appropriation authority expired.
To prepare each required journal entry:
1. Purchase orders in the amount of $15 million are issued in the general fund.
Account Name Debit Credit
Encumbrances
Expenditures
Encumbrances outstanding
PurchasesVouchers payable
2. The merchandise for which the purchase orders were issued is received.
Account Name Debit Credit
Encumbrances
Expenditures
Encumbrances outstanding
Purchases
Vouchers payable
3. The annual budget is closed out at year end.
Account Name Debit Credit
Appropriations
Estimated other financing uses -- transfersout
Budgetary fund balance
Estimated revenues
Expenditures
4. Encumbrances to lapse.
Account Name Debit Credit
Encumbrances
Expenditures
Encumbrances outstanding
Unassigned fund balance
Vouchers payable
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