Chap017-baker 15

Chap017-baker 15 - 21,000 Fund Balance Unreserved 21,000...

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Chapter 17 - Governmental Entities: Introduction and General Fund Accounting 17-15 E17-5 Encumbrances at Year-End a. Outstanding encumbrances lapse at year-end. (1) Order equipment—November 3, 20X2: ENCUMBRANCE 21,000 BUDGETARY FUND BALANCE--RESERVED FOR ENCUMBRANCES 21,000 Order equipment and record encumbrance. (2) Year-end entries—December 31, 20X3: BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES 21,000 ENCUMBRANCES 21,000 Close remaining budgeted encumbrances. Fund Balance – Unreserved 21,000 Fund Balance – Reserved for Encumbrances 21,000 Reserve actual fund balance for outstanding encumbrances at year-end. (3) City Council accepts outstanding encumbrances—January 1, 20X3: Fund Balance – Reserved for Encumbrances
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Unformatted text preview: 21,000 Fund Balance Unreserved 21,000 Reverse prior-year encumbrance reserve. ENCUMBRANCES 21,000 BUDGETARY FUND BALANCE RESERVED FOR ENCUMBRANCES 21.000 Establish budgetary control over encumbrances renewed from prior year. (4) Equipment receivedJanuary 18, 20X3: BUDGETARY FUND BALANCE RESERVED FOR ENCUMBRANCES 21,000 ENCUMBRANCES 21,000 Remove budgetary reserve for goods received. Expenditures 21,800 Vouchers Payable 21,800 Record expenditure for goods received at actual cost of $21,800. (5) Year-end entryDecember 31, 20X3: Fund BalanceUnreserved 21,800 Expenditures 21,800 Close 20X3 expenditures account....
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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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