Following is the September 30, 20X8, trial balance for ABC Agency:

ABC Agency

Postclosing Trial Balance

September 30 of Fiscal Year 20X8

(Amounts in thousands of dollars)

The agency applies the following accounting policies:
• Commitment accounting is used only for fixed assets, inventories for agency operations, and services.
• Salaries and benefits do not have undelivered orders placed in advance of expending the
appropriation for them.
• All disbursements except for salaries, benefits, and advances to others must have accounts payable established first.
Following are transactions during fiscal year 20X9. All are in thousands of dollars.
1. The agency received an appropriation warrant from the Treasury in the amount of $30,000, notifying it that its appropriation had been enacted in that amount. The enabling legislation specified that $9,000 was for salaries and benefits, $6,000 was for travel, and $15,000 was for fixed assets, materials, and services.
2. The OMB apportioned the entire appropriation during the year.
3. The agency head allotted $8,700 for salaries and benefits, $6,000 for travel, and $14,450 for fixed assets, inventory, and supplies.
4. The Treasury notified the agency that the checks ordered but not issued in fiscal year 20X8 were issued.
5. a. Travel orders in the amount of $5,400 were issued.
b. Checks for travel advances totaling $3,000 were requested from the Treasury.
c. The Treasury notified the agency that the checks ordered for the travel advances were issued.
d. Travel vouchers in the amount of $2,700 were received, including $375 for which travel orders had not been issued. Advances of $970 were to be applied.
e. Checks to pay the travel claims not previously advanced were ordered from the Treasury.
f. The advances related to fiscal year 20X8 were repaid by employees.
g. The Treasury notified the agency that the checks ordered in (e) were issued.
6. a. The agency head allotted the remaining payroll budget.
b. Payroll paid during the year, including the agency’s share of expenses, amounted to $9,015. Ignore withholding deductions and omit going through the disbursements in transit account. Remember that $75 was included in year 20X8 Expended Appropriations and is accrued.
7. a. Commitments were placed for $14,450 of fixed assets, inventory, and services.
b. The agency head allotted an additional $300 for fixed assets, inventory, and services.
c. Orders were placed for $14,700 of fixed assets, inventory, and services. Of those, $14,250 had previously been committed in the amount of $14,400. Because of failure to follow procedures, the remaining $450 had not been previously committed.
d. Orders in (c) were received and approved, as follows:

e. Checks for accounts payable of $14,100 were requested from the Treasury during the year, including those related to fiscal year 20X8. The Treasury notified the agency that checks amounting to $13,980 were issued during fiscal year 20X9, including those relating to fiscal year 20X8 accounts payable.
8. The following year-end information was compiled:
a. Depreciation on equipment amounted to $45.
b. Salaries and benefits other than annual leave to be accrued amounted to $60.
c. According to a report from the payroll department, the annual leave liability at fiscal year-end was $219.
d. A physical count of inventory indicated that $164 of inventory had been used.

Required
(a) Prepare the general journal entries required for ABC Agency for fiscal year 20X9.
(b) Post the entries to T-accounts.
(c) Prepare a preclosing trial balance for September 30, 20X9.
(d) Close theaccounts.

Transcribed Image Text:

Budgetary Accounts: Total Actual Resources Collected Undelivered Orders-Paid Expended Appropriations-Unpaid $183 15 165 Expired Authority S183 $183 Proprietary Accounts: $168 15 75 300 Fund Balance with Treasury-20X8 Advances to Others Inventory for Agency Operations Equipment Accumulated Depreciation on Equipment Disbursements in Transit Accounts Payable Accrued Funded Payroll and Benefits Accrued Unfunded Annual Leave Unexpended Appropriations-20X8 Cumulative Results of Operations $135 30 60 75 210 18 30 $558 558 Actual S 3,300 540 10,800 $14,640 Estimated 3,000 Equipment.. Inventory... Services Used. 600 10,875 $14,475