Chap017-baker 14

Chap017-baker 14 - 10,000 Revenue – Property Taxes...

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Chapter 17 - Governmental Entities: Introduction and General Fund Accounting 17-14 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. 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
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Unformatted text preview: 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...
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This note was uploaded on 10/09/2011 for the course ACC 253 taught by Professor Strimling during the Fall '11 term at Harper.

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