Reference no: EM132468024
The agency applies the following accounting policies:
- Commitment accounting is used only for fixed assets, inventories for agency operations, and services.
- Salaries and benefits do not have undelivered orders placed in advance of expending the appropriation for them.
- All disbursements except for salaries, benefits, and advances to others must have accounts payable established first.
Following are transactions during fiscal year 20X9. All are in thousands of dollars.
Point 1: The agency received an appropriation warrant from the Treasury in the amount of $30,000, notifying the agency that its appropriation had been enacted in that amount. The enabling legislation specified that $9,000 was for salaries and benefits, $6,000 was for travel, and $15,000 was for fixed assets, materials, and services.
Point 2: The OMB apportioned the entire appropriation during the year.
Point 1: The agency head allotted $8,700 for salaries and benefits, $6,000 for travel, and $14,450 for fixed assets, inventory, and supplies.
Point 3: The Treasury notified the agency that the checks ordered but not issued in fiscal year 20X8 were issued.
Point 4: Travel orders in the amount of $5,400 were issued.
Point 5: Checks for travel advances totaling $3,000 were requested from the Treasury.
Point 6: The Treasury notified the agency that the checks ordered for the travel advances were issued.
Point 7: Travel vouchers in the amount of $2,700 were received, including $375 for which travel orders had not been issued. Advances of $970 were to be applied.
Point 8: Checks to pay the travel claims not previously advanced were ordered from the Treasury.
Point 9: The advances related to fiscal year 20X8 were repaid by employees.
Point 10: The Treasury notified the agency that the checks ordered in (e) were issued.
Point 11: The agency head allotted the remaining payroll budget.
Point 12: Payroll paid during the year, including the agency's share of expenses, amounted to $9,015. Ignore withholding deductions and omit going through the disbursements in transit account. Remember that $75 was included in year 20X8 Expended Appropriations and is accrued.
Commitments were placed for $14,450 of fixed assets, inventory, and services.
Point 13: The agency head allotted an additional $300 for fixed assets, inventory, and services.
Point 14: Orders were placed for $14,700 of fixed assets, inventory, and services. Of those, $14,250 had previously been committed in the amount of $14,400. Because of failure to follow procedures, the remaining $450 had not been previously committed.
Orders in (c) were received and approved, as follows:
With the following information:
Question 1: Create general journal entries required for ABC Agency for fiscal year 20X9.
Question 2: Post the entries to T-accounts.
Question 3: Create a preclosing trial balance for September 30, 20X9.
Question 4: Close the accounts.