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Answers to question #2 parts a, b, and c should be entered on the separate attached journal voucher pages. Please refer to the attached chart of accounts for account numbers.

Q) The Housing Authority maintains a general ledger system that includes separate funds to account for its (i) Public Housing Program, (ii) Section 8 Program, and (iii) Public Housing Drug Elimination Program.The following questions require the preparation of journal entries to record various transactions. Using the attached chart of accounts and the journal entry forms, prepare separate answer (journal entry) for each question:

1. The Authority received an invoice in April from the local utility company for electrical services for the month of March. The total charges are $2,000.00 and the costs are to be shared between the Public Housing Program and the Section 8 Program. The Public Housing Program's share of the expense is 75%, with the balance is to be paid by the Section 8 Program. Prepare a general journal entry as of March 31^st to record the liability for electrical services for the month of March.

1. On April 2^nd the Authority was notified by its bank that an electronic wire transfer was received on April 1 from the Federal Government (HUD), in the amount of $250,000. The funds received will be used to pay Section 8 Program housing assistance payments due on April 15^th. Prepare a general journal entry to record the funds received by the Housing Authority on April 1^st.

1. The Authority has recently received a $100,000 grant from HUD for the new Public Housing Drug Elimination Program. The Program has incurred liabilities for materials & supplies in the amount of $5,000 as of June 30th. This liability must be paid before funds are received from HUD. You have determined that it will be necessary to borrow money from one of the Authority's other funds to cover the payment. Both the Section 8 Program fund and the Public Housing Program fund have sufficient cash to cover the loan (Section 8 fund cash = $75,000 and Public Housing fund cash = $50,000). Prepare a general journal entry to record the temporary loan to the Public Housing Drug Elimination Program fund from either the Section 8 fund or the Public Housing fund. Also explain your reason for the fund (Public Housing or Section 8) that you have selected to make the temporary loan to the Drug Elimination Program fund.

CHART OF ACCOUNTS

(The full account number is comprised of a FUND and MAJOR ACCOUNT NUMBER)

(i.e. FF-MMMM)

PROPERTY FUNDS

10 Public Housing fund

15 Section-8 program fund

20 Public Housing Drug Elimination Program fund

MAJOR ACCOUNTS

Assets

1. Cash in bank
2. Tenant accounts receivable
3. Miscellaneous accounts receivable
4. Due from other funds

1500 Due from other governments (HUD)

1600 Short term investments

1700 Inventory of materials and supplies

1. Land & structures

Liabilities

1. Accounts payable - trade

2200 Accrued payroll

1. Accrued payroll taxes
2. Accrued interest payable
3. Due to other funds
4. Due to other governments (HUD)
5. Deferred revenue

Income

1. Rental income
2. Interest income
3. Operating subsidies received/earned

Expenses

1. Salaries and wages
2. Payroll taxes
3. Legal

4400 Property & liability insurance

4500 Materials & supplies

4600 Utility expense

4700 Housing assistance payments

(To be used with question #2)

	Journal Voucher #2a.
	Effective Date >		________________________
	Account Number
	Property Fund	Major Account	Account Description	Debit	Credit
1
2
3
4
5
6
7
8
9
10
11
12
				Totals
Description:

	Journal Voucher #2b.
	Effective Date >		__________________________
	Account Number
	Property Fund	Major Account	Account Description	Debit	Credit
1
2
3
4
5
6
7
8
9
10
11
12
				Totals
Description:

	Journal Voucher #2c.
	Effective Date >		____________________________
	Account Number
	Property Fund	Major Account	Account Description	Debit	Credit
1
2
3
4
5
6
7
8
9
10
11
12
				Totals

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