Question

Shell City ordered a new computer at an anticipated cost of $115,000. The computer was received...

Shell City ordered a new computer at an anticipated cost of $115,000. The computer was received with an actual cost of $115,220. Payment was subsequently. Please record the transaction in the fund financial statement and governments wide financial statements.

Homework Answers

Answer #1

Government-wide financial statements

Government activities

Computer $115,220

Vouchers (Accounts) Payable $115,220

Vouchers (Accounts) Payable $115,220

Cash $115,220

(The capital asset have increased by the cost of a computer and cash decreases by the same amount)

FUND - BASED FINANCIAL STATEMENTS

GENERAL FUND
Encumbrances Control $115,000

Fund balance- Reserved for Encumbrances $115,000

Fund balance- Reserved for Encumbrances $115,000

Encumbrances Control $115,000

Expenditures Control $115,220

Vouchers Payable $115,220

Vouchers Payable $115,220

Cash $115,220

(On the statement of revenue, expenditures and change in fund balance, an expenditure of $115,220 will be shown. Cash will be decrease by that amount.)

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