Complete Chapters Included ✅
Appendix A
Comprehensive
Governmental Accounting Problem
QUESTIONS
Part A General Fund Budgetary Journal Entries (Chapter 3)
(45 minutes)
Item 1:
Estimated revenues – property taxes 9,000
Estimated revenues – personal income taxes 5,000
Estimated revenues – intergovernmental 1,000
Estimated revenues – recreation fees 600
Budgetary fund balance 500
Appropriations – public safety salaries 7,000
Appropriations – public safety supplies 500
Appropriations – public works salaries 5,000
Appropriations – parks salaries 2,300
Appropriations – transfer to Library Fund 100
Appropriations – transfer to Debt Service Fund 1,200
To record budget
Item 2:
Encumbrances– public safety supplies 450
Budgetary fund balance reserved for encumbrances 450
To record encumbrances for $300 firearms and $150 uniforms
Item 3:
Budgetary fund balance reserved for encumbrances 300
Encumbrances – public safety supplies 300
Expenditures – public safety supplies 330
Vouchers payable 330
To reverse encumbrances and record expenditure
Item 4:
Vouchers payable 330
Cash 330
To record payment of voucher
Continued
© 2026
Solutions Manual, Appendix A A-1
, Item 5:
Budgetary fund balance 100
Appropriations – public safety salaries 100
To record increase in appropriation
Appropriations Ledger (Public Safety Supplies
Appropriation Encumbrances Expenditures Balance
Item Credit Debit Credit Debit Credit
1. Budget 500 500
2. Purchase order 300 200
Purchase order 150 50
3. Order accepted 300 350
Record invoice 330 20
Part B (1) Journal Entries for General Fund Transactions (Chapter 5)
(70 minutes)
Item 1:
Cash 780
Revenues – property taxes 20
Property taxes receivable 800
To record receipt of cash and write-off of uncollectible
receivable
Deferred inflow or resources—unavailable property taxes 300
Revenues – property taxes 300
To recognize previously deferred property tax revenues
Item 2:
Salaries payable 700
Cash 700
To record payment of salaries unpaid at start of year
Item 3:
Property taxes receivable 9,030
Revenues – property taxes 9,000
Allowance for uncollectible taxes 30
To record tax levy for 2026 and set up allowance for
uncollectible taxes
Item 4:
Cash 8,100
Property taxes receivable 8,100
To record collection of property taxes
Continued
© 2026
A-2 Accounting for Governmental & Nonprofit Organizations, 3e
, Item 5:
Cash 4,600
Revenues – personal income taxes 4,600
To record collection of personal income taxes
Item 6:
Cash 700
Revenues – recreation fees 700
To record collection of recreation fees
Item 7:
Expenditures – public safety salaries 6,700
Expenditures – public works salaries 4,700
Expenditures – parks salaries 2,200
Cash 13,600
To record payment of salaries
Item 8:
Cash 1,000
Intergovernmental revenues – grants 1,000
To record intergovernmental grant revenue
Item 9:
Expenditures – public safety salaries 350
Expenditures – public works salaries 250
Expenditures – parks salaries 100
Salaries payable 700
To record accrual for unpaid salaries
Item 10:
Property taxes receivable – delinquent 930
Property taxes receivable 930
To record delinquent property tax receivables
Allowance for uncollectible taxes 30
Allowance for uncollectible taxes – delinquent 30
To record allowance account to delinquent
Revenues – property taxes 400
Deferred inflow of resources – unavailable property
taxes 400
To defer recognition of property taxes expected to be
collected more than 60 days after end of 2026.
Continued
© 2026
Solutions Manual, Appendix A A-3
, Item 11:
Income taxes receivable 500
Revenues – personal income taxes 500
To accrue taxes applicable to 2026, to be received in 2027
Income taxes receivable 200
Revenues – personal income taxes 100
Income tax refunds payable 300
To accrue estimated taxes receivable and refunds payable,
applicable to 2026
Item 12:
Expenditures – public safety salaries 10
Accrued vacation pay payable 10
To record accrual for vacation leave due and payable a
December 31. (Note: no accrual is recorded for vacation pay
not due and payable at December 31.)
Part B (2) Journal Entries for Special Revenue Fund Transactions (Chapter 5)
(20 minutes)
Note: All these entries are made in the Library Special Revenue Fund unless indicated
otherwise.
Item 1. General Fund
Transfer out to Library Special Revenue Fund 100
Cash 100
To record interfund transfer.
Library Special Revenue Fund
Cash 100
Transfer in from General Fund 100
To record interfund transfer
Item 2. Cash 300
Intergovernmental revenues – grants 300
To record grant from county for library operations.
Item 3. Cash 20
Revenues – miscellaneous 20
To record receipt of fines, donations, other revenues
Items 4. Expenditures – culture salaries 350
Expenditures – culture supplies 40
Cash 390
To record expenditures for salaries, books, periodicals
Continued
© 2026
A-4 Accounting for Governmental & Nonprofit Organizations, 3e
Appendix A
Comprehensive
Governmental Accounting Problem
QUESTIONS
Part A General Fund Budgetary Journal Entries (Chapter 3)
(45 minutes)
Item 1:
Estimated revenues – property taxes 9,000
Estimated revenues – personal income taxes 5,000
Estimated revenues – intergovernmental 1,000
Estimated revenues – recreation fees 600
Budgetary fund balance 500
Appropriations – public safety salaries 7,000
Appropriations – public safety supplies 500
Appropriations – public works salaries 5,000
Appropriations – parks salaries 2,300
Appropriations – transfer to Library Fund 100
Appropriations – transfer to Debt Service Fund 1,200
To record budget
Item 2:
Encumbrances– public safety supplies 450
Budgetary fund balance reserved for encumbrances 450
To record encumbrances for $300 firearms and $150 uniforms
Item 3:
Budgetary fund balance reserved for encumbrances 300
Encumbrances – public safety supplies 300
Expenditures – public safety supplies 330
Vouchers payable 330
To reverse encumbrances and record expenditure
Item 4:
Vouchers payable 330
Cash 330
To record payment of voucher
Continued
© 2026
Solutions Manual, Appendix A A-1
, Item 5:
Budgetary fund balance 100
Appropriations – public safety salaries 100
To record increase in appropriation
Appropriations Ledger (Public Safety Supplies
Appropriation Encumbrances Expenditures Balance
Item Credit Debit Credit Debit Credit
1. Budget 500 500
2. Purchase order 300 200
Purchase order 150 50
3. Order accepted 300 350
Record invoice 330 20
Part B (1) Journal Entries for General Fund Transactions (Chapter 5)
(70 minutes)
Item 1:
Cash 780
Revenues – property taxes 20
Property taxes receivable 800
To record receipt of cash and write-off of uncollectible
receivable
Deferred inflow or resources—unavailable property taxes 300
Revenues – property taxes 300
To recognize previously deferred property tax revenues
Item 2:
Salaries payable 700
Cash 700
To record payment of salaries unpaid at start of year
Item 3:
Property taxes receivable 9,030
Revenues – property taxes 9,000
Allowance for uncollectible taxes 30
To record tax levy for 2026 and set up allowance for
uncollectible taxes
Item 4:
Cash 8,100
Property taxes receivable 8,100
To record collection of property taxes
Continued
© 2026
A-2 Accounting for Governmental & Nonprofit Organizations, 3e
, Item 5:
Cash 4,600
Revenues – personal income taxes 4,600
To record collection of personal income taxes
Item 6:
Cash 700
Revenues – recreation fees 700
To record collection of recreation fees
Item 7:
Expenditures – public safety salaries 6,700
Expenditures – public works salaries 4,700
Expenditures – parks salaries 2,200
Cash 13,600
To record payment of salaries
Item 8:
Cash 1,000
Intergovernmental revenues – grants 1,000
To record intergovernmental grant revenue
Item 9:
Expenditures – public safety salaries 350
Expenditures – public works salaries 250
Expenditures – parks salaries 100
Salaries payable 700
To record accrual for unpaid salaries
Item 10:
Property taxes receivable – delinquent 930
Property taxes receivable 930
To record delinquent property tax receivables
Allowance for uncollectible taxes 30
Allowance for uncollectible taxes – delinquent 30
To record allowance account to delinquent
Revenues – property taxes 400
Deferred inflow of resources – unavailable property
taxes 400
To defer recognition of property taxes expected to be
collected more than 60 days after end of 2026.
Continued
© 2026
Solutions Manual, Appendix A A-3
, Item 11:
Income taxes receivable 500
Revenues – personal income taxes 500
To accrue taxes applicable to 2026, to be received in 2027
Income taxes receivable 200
Revenues – personal income taxes 100
Income tax refunds payable 300
To accrue estimated taxes receivable and refunds payable,
applicable to 2026
Item 12:
Expenditures – public safety salaries 10
Accrued vacation pay payable 10
To record accrual for vacation leave due and payable a
December 31. (Note: no accrual is recorded for vacation pay
not due and payable at December 31.)
Part B (2) Journal Entries for Special Revenue Fund Transactions (Chapter 5)
(20 minutes)
Note: All these entries are made in the Library Special Revenue Fund unless indicated
otherwise.
Item 1. General Fund
Transfer out to Library Special Revenue Fund 100
Cash 100
To record interfund transfer.
Library Special Revenue Fund
Cash 100
Transfer in from General Fund 100
To record interfund transfer
Item 2. Cash 300
Intergovernmental revenues – grants 300
To record grant from county for library operations.
Item 3. Cash 20
Revenues – miscellaneous 20
To record receipt of fines, donations, other revenues
Items 4. Expenditures – culture salaries 350
Expenditures – culture supplies 40
Cash 390
To record expenditures for salaries, books, periodicals
Continued
© 2026
A-4 Accounting for Governmental & Nonprofit Organizations, 3e
