Year-end adjusting journal entries

The following year-end adjustments need to be recorded for the agency: 1. An accrual of $108,000 was made for salaries earned the last week of September, to be paid in October. Budgetary funds were available for this purpose. 2. The agencys liability for unused vacation leave increased by $72,000 as a result of the years activities. The budget makes no provision for this expense until vacation leave is actually taken. 3. The agency discovered that a purchase order for $27,000 was inadvertently issued twice for the same thing. Therefore, one of the orders was cancelled. 4. The agency recorded depreciation of $45,000 on its equipment. a) Prepare the budgetary journal entries needed to record the year-end adjustments: Enter accounts in order of magnitude (largest to smallest amounts), debits first. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.

	Account	Debit	Credit
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	1. To record use of resources for salary accrual
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	2. To record accrual for unfunded leave.
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	3. To cancel obligation and restore budget authority.
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	4. To record depreciation of equipment.

b) Prepare the proprietary journal entries needed to record the year-end adjustments: Enter accounts in order of magnitude (largest to smallest amounts), debits first. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.

	Account	Debit	Credit
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	1a. To record accrual of year-end payroll.
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	1b. To record financing of salary accrual.
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	2. To record accrual for unfunded leave.
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	3. To cancel obligation and restore budget authority.
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	Accrued funded payrollAccumulated depreciation equipmentAllotments - realized resourcesDelivered orders obligations, unpaidExpended appropriationsFuture funded expensesProgram costs depreciationProgram costs salariesUndelivered orders obligations, unpaidUnexpended appropriations usedUnfunded leaveNo debit entry neededNo credit entry needed
	4. To record depreciation of equipment.