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Module 2 - Problem Set 2-CourseHero.docx

Module 2 - Problem Set 2-CourseHero.docx - Module 2 Problem...

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Module 2 Problem Set 2 Fund Accounting Govt Nonprof ACC-504 CHAPTER 3 Exercise 3-5 E3-5. Multiple Choice 1. What is a key difference between budgets prepared by governmental units and by commercial organizations? B. Budgets prepared by governmental units are legal documents, whereas those prepared by commercial organizations are not. 2. Which of the following is not included when preparing cash forecasts? D. Depreciation 3. Who prepares a nondepartmental expenditures request? D. The CEO or the budget director 4. When the city’s budget is approved, the total amount appropriated is greater than the estimated revenues. What are the implications of that budget? B. The city anticipates a budget deficit for the year. 5. Which of the following events results in a debit to the Encumbrances account? C. A purchase order is placed. 6. In the appropriations ledger, the amount available for appropriation is equal to B. The total appropriation minus outstanding encumbrances. 7. A city places a purchase order for police sedans at an estimated price of $100,000. The purchase order allows the supplier to increase the price by up to 5 percent if the price of steel increases. The city receives the sedans along with an invoice for $104,000. With what amount should the city credit the Encumbrances account? C. 100,000 Problems 3-4 & 3-5 P3-4. (Budgetary journal entry) Page | 1
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Module 2 Problem Set 2 Fund Accounting Govt Nonprof ACC-504 A city adopted the following budget for its General Fund for 2013. Prepare the journal entry to record the budget. P3-5. (Budgetary accounting) Prepare journal entries to record the following transactions and events affecting the General Fund of the Village of Kowitt Gorge during fiscal 2013. 1. The annual budget was adopted as follows: 2. Purchase orders were issued for supplies with the following estimated costs: Page | 2 Debit Credit Estimated Revenues – Property taxes 9,500,000 Estimated Revenues – Sales taxes 1,835,000
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