.
Not record depreciation expense in any of its funds
Always establish and maintain complete self-balancing accounts for each fund
Use only the cash basis of accounting
Use only the modified accrual basis of accounting
DR: Expenditures-Salaries and Wages 100,000; CR: Vouchers Payable 100,000
DR: Salaries and Wages Expense 100,000; CR: Vouchers Payable 100,000
DR: Encumbrances-Salaries and Wages 100,000; CR: Vouchers Payable 100,000
DR: Fund Balances 100,000; CR: Vouchers Payable 100,000
Interest
Personal services
Inventory items
Prepaid expenses
Estimated Revenue
Revenue
Appropriations
Fund Balance-Assigned for Encumbrances
No journal entry should have been made in the general fund
Fixed assets
Expenditures
Fund Balance-Unassigned
Accounts Receivable-Internal Service Fund
Transfers Out
Budgetary Fund Balance-Assigned for Encumberances
Expenditures
Appropriation
Encumbrance
Budget
Expenditure
Appropriations
Encumbrances
Obligations
Fund Balance-Assigned for Encumbrances
Debited to Fund Balance-Unassigned
Debited to Fund Balance-Assigned for Encumbrances
Debited to Budgetary Fund Balance-Unassigned
Credited to Fund Balance-Assigned for Encumbrances
DR: Encumbrances 630,000; Budgetary Fund Balance-Assigned for Encumbrances
DR: Expenditures 630,000; CR: Vouchers Payable 630,000
DR: Expenses 630,000; CR: Vouchers Payable 630,000
DR: Budgetary Fund Balances 630,000; Encumbrances 630,000
$0
$2,250
$3,000
$6,750
Memorandum entry only
Appropriations Control 900,000 Budgetary Fund Balance-Unassigned 100,000 Estimated Revenues Control 1,000,000
Estimated Revenues Control 1,000,000 Appropriations Control 900,000 Budgetary Fund Balance-Unassigned 100,000
Revenue Receivable 1,000,000 Expenditures Payble 900,000 Budgetary Fund Balance-Unassigned 100,000
Encumbrances
Budgetary Fund Balances-Assigned for Encumbrances
Estimated Revenue Control
Appropriations Control
Encumbrances
Budgetary Fund Balance-Assigned for Encumbrances
Vouchers Payable
Appropriations Control
Appropriations Control
Revenue-Property Tax
Budgetary Fund Balance-Assigned for Encumbrances
Encumbrances
Income determination
Flow of financial resources
Capital maintenence
Transfers relating to proprietary activities
Income, Financial Position and Flow of Financial Resources
Financial Position
Flow of Financial Resources
Financial Position and Flow of Financial Resources
An excess of vouchers payable over encumbrances
An excess of purchase order over invoices received
A recording error
An excess of appropriations over encumbrances
Goods are received
A voucher payable is recorded
A purchase order is approved
The budget is recorded
700,000
600,000
690,000
500,000
$5,000
(50)
4,950
50
9,000,000
9,500,000
10,500,000
10,000,000
Liability in the general fund
Fund balance designation in the general fund
Fund balance reserve in the general fund
Liability in the general long-term debt account group
Comparability is not relevant in governmental financial reporting
Differences between financial reports should be due to substantive differences in underlying transactions or the governmental structure
Selection of different alternatives in accounting procedures or practices account for the differences between financial reports
Similarly designated governments perform the same functions
Received bills from an internal service fund for using city-owned vehicles
Transferred cash to start an enterprise fund. The enterprise fund does not have to return the cash to the general fund
Received cash from a special revenue fund that was discontinued
Transferred cash to a capital projects fund to help construct a building
Transferred cash to a debt service fund to pay interest and principal of a general long-term debt
Transferred cash to the pension trust fund representing the employer's contribution toward the pension of general fund employees
Transferred resources to an enterprise fund. It is expected that these resources will be repaid with interest
Transferred cash to a special revenue fund. The special revenue fund incurred and paid expenditures on behalf of the general fund
Received cash from an internal service fund. The cash received represented repayment of an advance made during the previous year
Received bills from an enterprise fund for using public parking facilities