ch17 - SolutiontoChapter17 E171,3,4,8,9,10,12 E17-1...

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Solution to Chapter 17 E17‐1,3,4,8,9,10,12 E17-1 Multiple-Choice Questions on the General Fund [AICPA Adapted] 1. b 2. a 3. b 4. b 5. c 6. b E17-3 Multiple-Choice Questions on Budgets, Expenditures, and Revenue [AICPA Adapted] 1. c 2. d 3. c 4. a 5. b 6. c 7. d 8. b 9. c 10. d E17-4 Multiple-Choice Questions on the General Fund 1. b 2. d 3. c The balances in the ENCUMBRANCES CONTROL and the FUND BALANCE- RESERVED FOR ENCUMBRANCES accounts are the same. Therefore, an excess of one account over the other indicates a recording error.
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4. c The following entry is made when a purchase order is approved: ENCUMBRANCES CONTROL BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES 5. b The 60-day rule for property tax revenues states that property taxes collected within 60 days after the end of a fiscal year (within first 60 days of 2007) may be classified as revenues of the prior fiscal year (2006). The entry to record the tax levy would be: Property Taxes Receivable 700,000 Allowance for Uncollectible Taxes 10,000 Revenue – Property Taxes 600,000 Deferred Revenue (reported as a liability on the general fund balance sheet) 90,000 [Note: The estimated uncollectibles are on the property taxes reported as deferred revenue.] 6. a Upon receipt of the order, Oak would record the following entries: BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES 5,000 ENCUMBRANCES CONTROL 5,000 Expenditures Control 4,950 Vouchers Payable 4,950 7. a Johnson would record the following entry: ESTIMATED REVENUES CONTROL 9,000,000 ESTIMATED OTHER FINANCING SOURCE – TRANSFER IN (Internal Service) 1,000,000 ESTIMATED OTHER FINANCING SOURCE – TRANSFER IN (Debt Service) 500,000 APPROPRIATIONS CONTROL XXXXXX BUDGETARY FUND BALANCE – UNRESERVED XXX 8. c 9. a 10. b E17-8 Computation of Revenues Reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund
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Gilbert City Revenue Reported by the General Fund For the Year Ended June 30, 20X8 Property tax revenue $1,862,000 Interest revenue on advance 1,500 Grant revenue used to acquire computer equipment 235,000 Sales tax revenue 125,000 Liquor license revenue 66,000 Total revenue reported $2,289,500 Notes: (1) The amount reported for property tax revenue, $1,862,000 is computed in the following way: Levy $2,000,000 Less: Property taxes expected to be collected after August 31, 20X8 – the 60 day rule for property tax
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This note was uploaded on 03/26/2011 for the course ACTG 3400 taught by Professor Durkee during the Spring '11 term at Weber.

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ch17 - SolutiontoChapter17 E171,3,4,8,9,10,12 E17-1...

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