Question

A city orders a new computer for its General Fund at an anticipated cost of $96,300. Its actual cost when received is $98,260. Payment is subsequently made. a. Prepare all required journal entries for both fund and government-wide financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Solution :-

a ) :-

Fund financial statements :-

Account titles & explanation	Debit	Credit
Encumbrances Control	$96,300
Fund Balance-Reserve for Encumbrances		$96,300
Expenditures – Computer	$98,260
Vouchers Payable		$98,260
Fund Balance-Reserve for Encumbrances	$96,300
Encumbrances Control		$96,300
Vouchers Payable	$98,260
Cash		$98,260

Government-wide financial statements :-

Account titles & explanation	Debit	Credit
No journal entry required
Computer	$98,260
Vouchers Payable		$98,260
Vouchers Payable	$98,260
Cash		$98,260