The following transactions and events that occurred in the village of Kowitt Gorge during the calendar...

90.2K

Verified Solution

Question

Accounting

The following transactions and events that occurred in thevillage of Kowitt Gorge during the calendar year 2019: 1. Thevillage commissioners adopted the following budget: Estimatedrevenues: Property taxes $1,850,000 All other revenues 300,000Total revenues $2,150,000 Appropriations: All departments otherthan police $1,000,000 Police—salaries 600,000 Police—fringebenefits 450,000 Police—supplies 80,000 Total appropriations$2,130,000 2. The village received, in cash, property taxes of$1,840,000 and all other revenues of $295,000. 3. The village madecash payments, charging the following appropriations: Alldepartments other than police $1,000,000 Police—salaries 595,000Police—fringe benefits 390,000 4. The administrator of fringebenefits received an invoice for police employee health insurancein the amount of $95,000, together with a letter from the insuranceprovider, explaining that the large increase was caused by a changein federal laws. The invoice could not be paid because thePolice—fringe benefits appropriation had a balance of only $60,000(appropriation of $450,000 minus expenditures in item 3 of$390,000). As a result, the village commissioners amended thebudget as follows: Increase: Appropriation for police—fringebenefits $35,000 Decrease: Appropriation for police—salaries 5,000Decrease: Appropriation for police—supplies 25,000 Use of fundbalance 5,000 5. The village paid the invoice for $95,000, referredto in item 4 above, charging the appropriation for police—fringebenefits. 6. The police department placed PO 2019a for firearms inthe amount of $30,000 and PO 2019b for uniforms in the amount of$20,000, all charged to the appropriation for police—supplies.(Enter these POs as one transaction.) 7. After receiving PO 2019a,the supplier notified the police department that a change in thedesign of the weapons would increase the cost to $32,000. Thedepartment sent the supplier an amended PO, increasing it by$2,000. 8. The police department received the uniforms ordered onPO 2019b, together with an invoice for $20,000. The departmentapproved the invoice for payment. Record the transactions andevents applicable to the appropriations for police—fringe benefitsand police—supplies in the following appropriations ledger. NOTES:Use a negative sign with your answers if: 1. the amount entered inthe Appropriation column is a debit (Dr.) rather than a credit(Cr.); or 2. the amount entered in the Expenditures column is acredit (Cr.) rather than a debit (Dr.). In the AvailableAppropriation column, enter the appropriate balance after everytransaction/event, even if a transaction isn't recorded in aparticular ledger for that transaction. For Transaction 6, enterboth purchase orders (POs) as one combined transaction.Appropriations Ledger Appropriation: Police - fringe benefitsAppropriation Encumbrances Expenditures Available Transaction Cr.Dr. Cr. Dr. Appropriation 1 Answer 0 Answer 0 Answer 0 Answer 0Answer 0 2 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 3 Answer 0Answer 0 Answer 0 Answer 0 Answer 0 4 Answer 0 Answer 0 Answer 0Answer 0 Answer 0 5 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 6Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 7 Answer 0 Answer 0Answer 0 Answer 0 Answer 0 8 Answer 0 Answer 0 Answer 0 Answer 0Answer 0 Appropriations Ledger Appropriation: Police - suppliesAppropriation Encumbrances Expenditures Available Transaction Cr.Dr. Cr. Dr. Appropriation 1 Answer 0 Answer 0 Answer 0 Answer 0Answer 0 2 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 3 Answer 0Answer 0 Answer 0 Answer 0 Answer 0 4 Answer 0 Answer 0 Answer 0Answer 0 Answer 0 5 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 6Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 7 Answer 0 Answer 0Answer 0 Answer 0 Answer 0 8 Answer 0 Answer 0 Answer 0 Answer 0Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0

Answer & Explanation Solved by verified expert
4.4 Ratings (753 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students