Flashcards in FAR-Government JEs Deck (11):
With the modified accrual method, what is the entry to record tax receivable?
DR Taxes Receivable
CR: Deferred Revenues
CR: Allowance for uncollectable
Taxes Receivable by full amount
Revenues that will be collected in current period
Deferred Revenues that will be collect in next period
Allowance for uncollectable
With modified accrual, what is the journal entry to recognize deferred tax revenues in the period in which they will be collected?
DR: Deferred Revenues
What is the journal entry to create an encumbrance?
CR: Reserved for Encumbrances
What are the journal entries once a bill has been received for an encumbrance?
DR: Reserved for Encumbrances
*Reversal of encumbrance once order has been filled and actual bill has been received
CR: Vouchers Payable
*Bill was received creating an expenditure (How much something actually costs); A corresponding liability is credited upon receipt of the bill.
What is the journal entry when settling a payable?
DR: Vouchers Payable
*Upon payment of the bill, the liability is paid off and cash is reduced to reflect payment.
What is the beginning of fiscal year entry to record estimated revenues, sources, and the budget?
DR: Estimated Revenues
DR: Estimated other financial sources
CR: Budgetary Fund Balance – Unreserved
CR: Estimated other financial uses
*Debits to estimated revenues and sources for year. Appropriations for expected expenditures; Estimated Other financial uses for items such as transfers to other departments; Budgetary Fund Balance for the balance remaining.
What is the end of year closing entry for a fiscal year budget?
Reverse the beginning year entry.
DR: Budgetary Fund Balance – Unreserved
DR: Estimated other financial uses
CR: Estimated Revenues
CR: Estimated other financial sources
Once the budget entry has been closed, what is the closing entry for actual revenues and sources?
DR: Other Financials Sources
CR: Fund balance – unreserved
CR: Encumbrances (For outstanding orders)
CR: Other financial uses
*Closes nominal accounts. Fund Balance – Unreserved is a balance of what remains and is similar to retained earnings
What is the closing entry for open encumbrances?
DR: Fund Balance – unreserved
*Due to there being a legal commitment to purchase, the Fund Balance Restricted is reduced
What is the closing entry to create an adjustment for ending inventory?
DR: Inventory Supplies
CR: Reserves for Inventories