Reference no: EM132468018

Question (a) Prepare the general journal entries required for ABC Agency for fiscal year 20X9.

Question (b) Post the entries to T-accounts.

Question (c) Prepare a preclosing trial balance for September 30,20X9.

Question (d) Close the accounts.

The agency applies the following accounting policies:

Point 1: Commitment accounting is used only for fixed assets, inventories for agency operations, and services.

Point 2: Salaries and benefits do not have undelivered orders placed in advance of expending the appropriation for them.

Point 3: 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 3: The agency head allotted $8,700 for salaries and benefits, $6,000 for travel, and $14,450 for fixed assets, inventory, and supplies.

Point 4: The Treasury notified the agency that the checks ordered but not issued in fiscal year 20X8 were issued.

Point 5: Travel orders in the amount of $5,400 were issued.

Point 6: Checks for travel advances totaling $3,000 were requested from the Treasury.

Point 7: The Treasury notified the agency that the checks ordered for the travel advances were issued.

Point 8: 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 9: Checks to pay the travel claims not previously advanced were ordered from the Treasury.

Point 10: The advances related to fiscal year 20X8 were repaid by employees.

Point 11: The Treasury notified the agency that the checks ordered in (e) were issued.

Point 12: The agency head allotted the remaining payroll budget.

Point 13: 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.

Point 14: Commitments were placed for $14,450 of fixed assets, inventory, and services.

Point 15: The agency head allotted an additional $300 for fixed assets, inventory, and services.

Point 16: 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:

                              Estimated         Actual

Equipment                 $ 3,000          $ 3,300

Inventory                       600               540

Services Used              10,875          10,800

                                $14,475       $14,640

Checks for accounts payable of $14,100 were requested from the Treasury during the year, including those related to fiscal year 20X8. The Treasury notified the agency that checks amounting to $13,980 were issued during fiscal year 20X9, including those relating to fiscal year 20X8 accounts payable.

The following year-end information was compiled:

• Depreciation on equipment amounted to $45.
• Salaries and benefits other than annual leave to be accrued amounted to $60.
• According to a report from the payroll department, the annual leave liability at fiscal year end was $219.
• A physical count of inventory indicated that $164 of inventory had been used.