Question

(a) Record the following transactions in the General Fund General Ledger of a school district that uses the purchases method to account for materials, supplies, and prepayments. Record both the budgetary and actual entries. Assume that materials and supplies costing $37,000 were on hand at the beginning of the year.
(b) What amount of nonspendable fund balance should be reported at year end?
1. The school district ordered the following:
  Estimated Cost
School buses—2 . . . . . . . . . . . . . . . . . . . . . . . . . . . $225,000
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,000
2. The school received one of the buses at an actual cost of $120,000, which equaled the estimated amount.
3. The school received most of the supplies ordered (estimated cost, $95,000). The actual cost was $95,800.
4. The school paid $93,000 of the vouchers payable for the supplies.
5. At year end, the school had supplies on hand costing $22,000.



$1.99
Sales0
Views17
Comments0
  • CreatedOctober 25, 2014
  • Files Included
Post your question
5000