Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

To improve its recreation facilities and to reduce its unemployment rate, Empire State created the Ticonderoga Trails Special Revenue Fund. By law, all traffic fines

To improve its recreation facilities and to reduce its unemployment rate, Empire State created the Ticonderoga Trails Special Revenue Fund. By law, all traffic fines collected by the state police were directed to be deposited into the Ticonderoga Trails Special Revenue Fund, and used only to pay for the supplies and salaries of individuals employed to create new hiking trails in Ticonderoga State Park. There was no balance in the fund at the beginning of 2021. The Fund had the following transactions and events during the calendar year. 1. The legislature adopted and the governor approved a budget. Estimated traffic fine revenues were $1,125,000. Appropriations were for parks and recreation program salaries of $975,000 and for parks and recreation program supplies of $135,000. 2. Received traffic fine revenues of $1,140,000 during the year. 3. Paid salaries of $937,500 during the year. 4. Incurred a liability of $22,500 for salaries earned by employees during the last work week in December that will be paid in early January 2022. 5. Issued purchase orders for supplies totaling $127,500. 6. Received deliveries of all the supplies ordered in the previous transaction. The supplies were inspected and vouchers were prepared for payment. Then, the invoices were paid. a) Prepare journal entries to record these transactions and events If an entry affects more than one debit or credit account, enter the accounts in order of magnitude (largest to smallest balances), debits first. Enter 0 or leave the field blank if no entry is required.

image text in transcribedimage text in transcribed Account Debit Credit Accrued salaries payable Appropriations - parks and recreation salaries Appropriations - parks and recreation supplies Budgetary fund balance Budgetary fund balance reserve for encumbrances Cash Encumbrances - parks and recreation supplies Encumbrances - parks and recreation salaries Estimated revenues - traffic fines Expenditures - parks and recreation salaries Expenditures - parks and recreation supplies Revenues - traffic fines Vouchers payable To record purchase orders for supplies. To record supplies received. Torecordinvoicesreceivedforsupplies. To record payment of invoices. b) Prepare a statement of revenues, expenditures, and changes in fund balance. Enter expenditures in the order of magnitude (largest to smallest balances)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Government And Not For Profit Accounting

Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch

6th Edition

0132366355, 978-0132366359

More Books

Students also viewed these Accounting questions

Question

List three benefits of using a to-do list.

Answered: 1 week ago

Question

3. Explain how to conduct an appraisal feedback interview.

Answered: 1 week ago

Question

1. Answer the question, Who should do the appraising?

Answered: 1 week ago