Chap017-baker 16

Chap017-baker 16 - Fund Balance – Reserved for...

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Chapter 17 - Governmental Entities: Introduction and General Fund Accounting 17-16 E17-5 (continued) b. Outstanding encumbrances are nonlapsing. (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, 20X2: BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES 21,000 ENCUMBRANCES 21,000 Close remaining budgetary encumbrances. Fund Balance – Unreserved 21,000 Fund Balance – Reserved for Encumbrances 21,000 Reserve fund balance for outstanding encumbrances. (3) Date the encumbrances from prior year—January1, 20X3::
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Unformatted text preview: Fund Balance – Reserved for Encumbrances 21,000 Fund Balance – Reserved for Encumbrances – 20X2 21,000 Reclassify reserve from 2002, prior year. (4) Equipment received—January 18, 20X3: Expenditures – 20X2 21,000 Expenditures (20X3) 800 Vouchers Payable 21,800 Record actual expenditure for goods received. (5) Closing entries—December 31, 20X3: Fund Balance – Reserved for Encumbrances – 20X2 21,000 Expenditures – 20X2 21,000 Close expenditures account for prior year encumbrances. Fund Balance – Unreserved 800 Expenditures (20X3) 800 Close expenditures for current year....
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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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