Chapter 11 ppt

Trations threefundsinexample

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Unformatted text preview: e work is done Actual cost charges may result in inequitable allocations among departments Relation to Budget Relation to Budget Budget may not be used since level of activity depends on demand, not predetermined spending by the fund ISF Accounting Illustrations ISF Accounting Illustrations Three funds in example: Central Automotive Equipment Fund (CAEF) Stores Fund (SF) Self­Insurance Fund (SIF) CAEF Buys Equipment & Supplies CAEF Buys Equipment & Supplies Machinery & Equipment 40,000 NotesPayable 15,000 Cash 25,000 Inventory of Materials & Supplies Vouchers Payable 10,000 10,000 CAEF Pays Salaries & Wages CAEF Pays Salaries & Wages Expenses – Mechanics Wages Expenses – Indirect Labor Expenses – Superintendent’s Salary Expenses – Office Salaries Cash 9,000 3,000 3,500 3,500 19,000 CAEF Pays for Utilities CAEF Pays for Utilities Expenses – Heat, Light, & Power Cash 2,000 2,000 CAEF Records Depreciation CAEF Records Depreciation Expenses – Depr...
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