Transaction Analysis and Statements. Congress authorized the Flood Control Commission to start operation on October 1, 2011.

Question:

Transaction Analysis and Statements. Congress authorized the Flood Control Commission to start operation on October 1, 2011.
Required
a. Record the following transactions in general journal form as they should appear in the accounts of the Flood Control Commission. Record all expenses in the Operating/Program Expenses account.
(1) The Flood Control Commission received official notice that the one- year appropriation passed by Congress and signed by the President amounted to $7,000.000 for operating expenses.
(2) The Office of Management and Budget notified the Commission of the following schedule of apportionments: first quarter, $2,000,000; second quarter, $2,000,000; third quarter. $1,500,000: and fourth quarter, $1,500,000.
(3) The Flood Control Commissioner allotted $1,000.000 for the first month’s operations.
(4) Obligations were recorded for salaries and fringe benefits. $400,000; furniture and equipment, $270,000: materials and supplies, $250,000; and rent and utilities, $50,000. The Commission does not record commitments prior to recording obligations.
(5) Payroll for the first two weeks in the amount of $170,000 was paid.
(6) Invoices approved for payment totaled $395,000: of the total. $180,000 was for furniture and equipment, $175,000 for materials and supplies, and $40,000 for rent.
(7) A liability was recorded for the payroll for the second two weeks, $160,000, and for the employer’s share of FICA taxes for the four weeks, $23,000. (Note: Credit to Accrued Funded Payroll and Benefits.)
(8) Accounts payable totaling $189,000 were paid, which included liabilities for materials and supplies, $149,000, and rent, $40,000. Accrued Funded Payroll and Benefits in the amount of $183,000 were paid.
(9) Accruals recorded at month-end were salaries, $30,000, and utilities, $10,000. Materials and supplies costing $60,000 were used during the month. Depreciation of $2,500 was recorded on furniture and equipment for the month. (Note: In practice. this would likely be done in worksheet form for monthly reporting purposes)
(10) Necessary closing entries were prepared as of October 31, 2011. (Note: Again, for monthly statements, this would be a worksheet entry only.)
b. Prepare the Balance Sheet of the Flood Control Commission as of October 31, 2011, assuming that all of the Commission’s assets are entity assets. Fund Balance with Treasury is intragovernmental, and all other assets are governmental.
c. Prepare the Statement of Changes in Net Position of the Flood Control Commission for the month ended October 31, 2011.
d. Prepare the Statement of Budgetary Resources of the Flood Control Commission for the month ended October 31, 2011.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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...
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Related Book For  answer-question

Accounting for Governmental and Nonprofit Entities

ISBN: ?978-0073379609

15th Edition

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

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