Like most employees, governmental employees receive annual compensated sick leave, family leave, and vacation days. Often, employees

Question:

Like most employees, governmental employees receive annual compensated sick leave, family leave, and vacation days. Often, employees are compensated for unused accumulated annual leave upon retirement or termination. Following is supplementary footnote information concerning governmental funds' compensated absences for the State of South Carolina for fiscal year 2010:
Unpaid compensated absences as of July 1, 2009 $219,949,000
Unpaid compensated absences as of June 30, 2010 214,113,000
Required
Suppose that compensated absences are recorded in the general fund, and the general fund paid $25,000,000 to employees during fiscal 2010 for compensated absences.
a. Present the journal entry or entries necessary to record the above events in the general fund.
b. How would the above events be recorded if the general fund used full accrual accounting?
c. Comment on the value of the general fund in evaluating South Carolina's future obligation for compensated absences. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...