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Flashcards in FAR-Government JEs Deck (11):
1

With the modified accrual method, what is the entry to record tax receivable?

DR Taxes Receivable
CR: Revenues
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

2

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
CR: Revenues

3

What is the journal entry to create an encumbrance?

DR: Encumbrances
CR: Reserved for Encumbrances

4

What are the journal entries once a bill has been received for an encumbrance?

DR: Reserved for Encumbrances
CR: Encumbrances
*Reversal of encumbrance once order has been filled and actual bill has been received

DR: Expenditure
CR: Vouchers Payable
*Bill was received creating an expenditure (How much something actually costs); A corresponding liability is credited upon receipt of the bill.

5

What is the journal entry when settling a payable?

DR: Vouchers Payable
CR: Cash
*Upon payment of the bill, the liability is paid off and cash is reduced to reflect payment.

6

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: Appropriations
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.

7

What is the end of year closing entry for a fiscal year budget?

Reverse the beginning year entry.
DR: Budgetary Fund Balance – Unreserved
DR: Appropriations
DR: Estimated other financial uses
CR: Estimated Revenues
CR: Estimated other financial sources

8

Once the budget entry has been closed, what is the closing entry for actual revenues and sources?

DR: Revenues
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

9

What is the closing entry for open encumbrances?

DR: Fund Balance – unreserved
CR: Encumbrances

*Due to there being a legal commitment to purchase, the Fund Balance Restricted is reduced

10

What is the closing entry to create an adjustment for ending inventory?

DR: Inventory Supplies
CR: Reserves for Inventories

11

What is the main purpose for government-wide financial statements?

To show operational accountability