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Year-end accounting for encumbrances Alocal government budget policy allows open encumbrances to lapse at the end of the year, its budget for the following year
Year-end accounting for encumbrances Alocal government budget policy allows open encumbrances to lapse at the end of the year, its budget for the following year takes the open encumbrances into account and expenditures resulting from those encumbrances are charged against the following year's appropriations General Rund has open encumbrances of 150.000 at the end of fiscal year 2072 There are no restrictions or comments on the use of these resources 1. What journal entry or entries should be made at the end of fiscal 2022 2. What journal entry or entries should be made at the start of fiscal 2023 Entries are needed to close the encumbrances and record an assignment of fund balance as follows: Account TA Debit Credit 3 O Tadeset . 0 To und be encumbunden Entries are needed to restore the encumbrances and reverse the assigned assification, as follows Account Debit Credit O 1. dumtances 2022 + Terdessen 2023 Check 70 / 11 Assigned fund balance Budgetary fund balance reserved for encumbrances Encumbrances Nonspendable fund balance Supplies inventory Unassigned fund balance
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