ACCY 407 - Chapter 4, Top Questions and answers, 100% Accurate. Graded A+

ACCY 407 - Chapter 4, Top Questions and answers, 100% Accurate. Graded A+ What is the measurement focus for governmental funds? - -Governmental funds focus on the flow of current financial resources. They include: Cash, receivables, securities, prepaid items, and supplies inventories. Liabilities include current liabilities such as accounts or vouchers payable, accrued liabilities,and deferred revenues. Where are assets and noncurrent liabilities recorded for government funds? - -Not recorded for government funds. Recorded in governmental activities at the government wide level. What are the steps in the budgetary control process? - -1) Appropriations- Not greater than speciefed amounts. 2) Encumbrance- Estimated liability, arises from a purchase order. 3)Expenditure- Actual Liability 4) Disbursement - Settling the liability The budget for Clark City authorizes expenditures of $11,360,000 and forecasts revenues of $10,972,000 for FY 2014. The entry to record the budget (ignoring subsidiary detail) is? Also, is this a deficit or surplus? - -DR Estimated Revenues 10,972,000 DR Bugetary Fund balance 388,000 CR Appropriations 11,360,000. Deficit since appropriations Estimated revenues. Assume that the following departments of Clark City place purchase orders for supplies totaling $420,000. a)The journal entry for this is? b)Also is there an entry for budget and encumbrance in government wide books? - -a) Dr. Encumbrances 420,000 Cr. Encumbrances Outstanding 420,000 b)no entry, uses financial accounting. Clark City recorded expenditures of $432,000 for goods received that had been ordered in the preceding transaction. The journal entry to record the expenditure? - -General Fund: Dr. Encumbrances outstanding 420 Cr. Encumbrances 420 Dr. Expenditures-2014 432,000 Cr Vouchers Payable 432,000 What is the journal entry to account for expenses? - -Governmental Activities: Dr. Expenses- general government 432,000 Cr. Vouchers Payable 432,000 How do we account for payroll accounting? - -Payroll accounting is similar for a governmental fund and a for-profit entity, EXCEPT that EXPENDITURES rather than expenses are recorded. What is the journal entry to record Payroll for the general fund?? - -Dr. Expenditures(for full amount of payroll) Cr. Due to federal government Cr Due to state government Cr. Cash Note: The due to government accounts are liabilities. Note: The cash credited is what you actually get paid. Note: Since it is a general fund it uses modified accrual basis. Note: On the books of the employer What is the journal entry to record payroll for the government-wide level? - -Dr. Expenses - 2014 Cr. Due to federal government Cr. Due to State government Cr. Cash Note: since it is a government wide level it uses the accrual basis.