Asked by Kennedy Kaiser on Jun 10, 2024
Verified
On July 1, 2021, Carbondale City ordered $1,800 of office supplies. They were to be paid for out of the general fund.Required:(A) What journal entry was required for the governmental fund financial statements?(B) What journal entry was required for the government-wide financial statements?
General Fund
The main operating fund of a government, covering general expenses not accounted for by specific funds.
Government-Wide Financial Statements
Comprehensive financial reports that display the financial condition of a government entity as a whole, as opposed to focusing on individual funds or accounts.
- Understand the methodology and perform the recording of transactions in governmental and enterprise funds through journal entries.
- Differentiate between categories of fund financial statements and financial statements that apply to the entire government.
Verified Answer
AB
Anisa BordayoJun 13, 2024
Final Answer :
(A) For the governmental fund financial statements, an encumbrance must be recorded in the general fund. 
(B) For the government-wide financial statements, no entry is required because under accrual accounting, no entry is made until a transaction occurs.
(B) For the government-wide financial statements, no entry is required because under accrual accounting, no entry is made until a transaction occurs.
Learning Objectives
- Understand the methodology and perform the recording of transactions in governmental and enterprise funds through journal entries.
- Differentiate between categories of fund financial statements and financial statements that apply to the entire government.
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