Question

Prepare the necessary governmental fund and government-wide journal entries, assuming a December 31, 2019 fiscal year end.

1. When the budget was prepared, the city actuary advised the finance commissioner that the required pension contribution for the year, based on actuarial standards and GASB requirements, would be $60,000.  However, the amount appropriated was only $49,000.  The city does not intend to increase the appropriation.  A check for $49,000 is sent to the city’s pension fund.

Governmental Fund:
Pension Expenditure	$49,000
Cash		$49,000
Government wide:
Pension Expense
Cash

2. The City uses the purchase method to account for the acquisition of supplies by its General Fund.  At December 31^st (prior to adjusting entries), the balance in the supplies inventory account was $75,000.  A physical count determined the actual ending supplies inventory total to be $81,000. Prepare the journal entry that needs to be made at the end of fiscal 2019 to adjust the amount of supplies inventory.  Record entry only for the purchase method.1 entry

Governmental Fund:
Supplies Expenditure
Vouchers Payable
Supplies Inventory
Fund Balance (non-spendable)
Government Wide:
No entry needed

Answer 1

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