Share
Explore BrainMass

Prepare and analyze journal entries, closing entries

3-3
A county engages in basic transactions.
Kilbourne County engaged in the following transactions
in summary form during its fiscal year. All amounts
are in millions.

1. Its commissioners approved a budget for the current
fiscal year. It included total revenues of $860 and total
appropriations of $850.

2. It ordered office supplies for $20.

3. It incurred the following costs, paying in cash:
Salaries $610
Repairs $ 40
Rent $ 25
Utilities $ 41
Other operating costs $119

4. It ordered equipment costing $9.

5. It received the equipment and was billed for $10, rather
than $9 as anticipated.

6. It received the previously ordered supplies and was
billed for the amount originally estimated. The county
reports the receipt of supplies as expenditures; it does
not maintain an inventory account for supplies.

7. It earned and collected revenues of $865.
a. Prepare journal entries as appropriate.
b. Prepare closing entries as appropriate.
c. What would have been the difference in the year-end
financial statements, if any, had the county not made
the budgetary entries?

Solution Preview

See attached files.

Answer to your last question of critical thinking is produced herewith.

What would have been the difference in the year-end financial statements, if any, had the county not made the budgetary entries?

The budgeted income statement estimates the expected operating income from budgeted operations. It also gives management a vision of the likely operating result upon completing the budgeted operation. Once this part is complete it will become the benchmark against ...

Solution Summary

The expert prepares and analyzes journal entries and closing entries.

$2.19