APPENDIX A                          

  PRINT - LANDSCAPE FORMAT / COLOR 

ACCOUNTING PROTOTYPE (YEAR 2001)

CORPORATE / GOVERNMENT JOURNAL ENTRIES

The color coded general ledger accounts that appear in the journal entries below 

compare on a one-for-one basis with the Chart of Accounts, glossary, and line 

item descriptions that appear in the integrated financial statements for Year 1 

and Year 2 in this web site.    

FINANCE / BUDGET TYPE ENTRIES                                                
 
CORPORATE   GOVERNMENT
     
(1) PREFERRED STOCK SALE   (1) RECEIPT OF TREASURY WARRANT
 
CASH                                      6000,000   TREASURY WARRANT (NOA)                        600,000
  PREFERRED STOCK                   500,000        FUNDED BUDGET                                                    600,000
  PREMIUM ON STOCK                100,000  
Issue of stock, 10,000 shares, $50 par, at $60.  

Record receipt of a Treasury Warrant issued by the federal 

(or any government) Treasury denoting that Congress has 

appropriated $600,000 in New Obligational Authority (NOA) 

for the purchase of an equivalent amount of goods and services.  

The money should be deposited in Treasury in accordance with 

sound cash management practices.  (For example, if $150,000 in 

budget authority is available each quarter, then, that is the amount 

that should be deposited in Treasury for each of those periods).                                  

 
(2) RECEIPT OF CASH ADVANCE  

(2) RECEIPT OF CASH ADVANCE (FROM WITHIN THE

     GOVERNMENT)                                                          

 
CASH                                           60,000   CASH TRANSFERS                                                               60,000
    ADVANCES PAYABLE              60,000         ADVANCES PAYABLE                                                           60,000
  ECS  CASH TRANSFERS - ADVANCES PAYABLE          60,000
        FUNDED BUDGET                                                                 60,000
 
Receipt of cash in advance of providing goods or services.   Cash received from another appropriation and/or agency in advance of providing goods or services.  (Processed by transferring cash (+/-) within Treasury).
 
 
(3) ANTICIPATED SALE OF ADDITIONAL STOCK   (3) ANTICIPATE SUPPLEMENTAL TREASURY  WARRANT
 
NOT APPLICABLE (N/A)   ANTIC.  TREASURY WARRANT (SUPPLEMENTAL)       10,000
        UNFUNDED BUDGET                                                                   10,000
 
 

Approval of additional budget authority by Congress, or a comparable legislative 

body, after passage of the initial appropriation (identified as new obligational 

authority.

 
 
(4) ANTICIPATED REIMBURSEMENTS   (4) ANTICIPATED REIMBURSEMENTS
 
N/A   ANTIC. BUDGET RECEIPTS (REIMB)                           14,000
       UNFUNDED BUDGET                                                           14,000 
 
  Congress approved the sale of goods & services as an authorized budget funding source.
 
 
(5)  ANTICIPATED BOND SALE   (5)  ANTICIPATED BOND SALE
 
N/A   ANTIC. BUDGET RECEIPTS - BOND SALE               26,000
       UNFUNDED BUDGET                                                            26,000
 
  Congress approved the sale of bonds as authorized budget funding source.
 
 
(6) BUDGET DISTRIBUTION (OFFICE / ASSET OR EXPENSE)   (6) BUDGET DISTRIBUTION (OFFICE / ASSET OR EXPENSE)
 
N/A   FUNDED BUDGET                                          200,000
       CURRENT QUARTER BUDGET                              200,000
 
 

Current quarter budgets are recorded at the agency's department, branch, section, office ... 

levels and by asset / expense.  Cumulative effect of agency asset & expense budget is 

summarized below:

 
  FIRST QUARTER BUDGET
 
  FIXED COSTS                  AVAILABLE     DEPT    BRANCH   SECTION  
  SALARIES                                  90,000       
  BUILDING RENT                     26,600
  UTILITIES                                    4,000
  BOND INTEREST                          400
  LICENSING FEES                      9,000
                                                      130,000
 
  VARIABLE COSTS
  OFFICE EQUIP.                         30,000
  TRANSP. EQUIP.                      15,000
  TRAVEL EXP.                           24,000
  ADMIN. SUPPLIES                    1,000
                                                       70,000
 
  FIRST QUARTER BUDGET         200,000
 
 
(7) ESTABLISH CONTINGENCY RESERVE   (7) ESTABLISH CONTINGENCY RESERVE
 
N/A   FUNDED BUDGET                                               25,000
       BUDGET RESERVE (CONTINGENCY)                    25,000
 
  Establish contingency budget reserve.
 
(8) RECORD SUBSEQUENT QTRS. BUDGET   (8) RECORD SUBSEQUENT QTRS. BUDGET
 
  FUNDED BUDGET                                               485,000
       SUBSEQUENT QTRS. BUDGET                          485,000
 
  Record subsequent quarter's budget.
 
 
 

SUBSEQUENT QUARTERS BUDGET COMPUTATION

 

  CASH REALIZED:
 

TREASURY WARRANT (600,000) 

CASH TRANSFERS        (60,000)                                            660,000

 
  PLUS CASH ANTICIPATED:
 

TREASURY WARRANT               (10,000) 

BUDGET RECEIPTS  B/P             (26,000) 

BUDGET RECEIPTS - REIMB.   (14,000)                                 50,000

  TOTAL BUDGET RESOURCES                                              710,000
 
  LESS AMOUNT ALREADY DISTRIBUTED:
 

CURRENT QTR BUDGET                          (200,000) 

BUDGET RESERVE - CONTINGENCY      (25,000)              225,000

 
  SUBSEQUENT QTRS. BUDGET                                          485,000
 
 
CORPORATE   GOVERNMENT
FINANCE / BUDGET ACTIVITY   FINANCE / BUDGET ACTIVITY
TRIAL BALANCE   TRIAL BALANCE
 
DEBIT CREDIT   DEBIT CREDIT
CASH 660,000   TREASURY WARRANT 2/ 600,000
ADV. PAY. 60,000   CASH TRANSFERS 2/   60,000
PREF. STOCK 500,000   ECS - CASH TRANSFERS - ADVANCES 60,000
PREM. STOCK 100,000   ANTIC. TW (SUPPLEMENTAL) 10,000
660,000 660,000   ANTIC. BUDGET REC. - B / P 26,000
  ANTIC. BUDGET REC. REIMBUR 14,000
  ADVANCES PAYABLE

     60,000

CAPITAL STOCK =  710,000 - 50,000 - 60,000   FUNDED BUDGET

1 / 50,000

             600,000     =  600,000   UNFUNDED BUDGET

1/  50,000

  CURRENT QTR. BUDGET    200,000
  SUBSEQUENT QTRS. BUDGET    485,000
  BUDGET RES. - CONTINGENCY      25,000
  820,000    820,000
 
 

1/  The $50,000 GLA funded budget debit indicates that $50,000 of the budget 

apportioned in subsequent quarters is not backed by Cash in Treasury (and will 

not appear on Treasury's Statement).  As moneys are collected, both GLA 

funded budget (debit) and unfunded budget (credit) account balances will 

decrease.  Assuming the final fourth quarter budget still has a funded budget 

debit at the end of the third quarter, the fourth quarter budget is decreased 

by that amount to prevent an anti-deficiency (overspending the budget).

 

2/ Governments, unlike private-sector businesses, identify their cash sources

 i.e. Treasury Warrant- 600,000; cash transfer - 60,000.  Despite this difference,

 total government cash sources always equal the private sector cash balance 

(600,000 + 60,000 = 660,000)

   
COMMITMENT, OBLIGATION, EXPENDITURE (OF BUDGET), AND PAYMENTS
FIXED EXPENSES
 
CORPORATE   GOVERNMENT
 
(9) RESERVE FIXED COST PORTION OF BUDGET   (9) RESERVE FIXED COST PORTION OF BUDGET
 
N/A   CURRENT QUARTER BUDGET               130,000
      COMMITMENTS                                                  130,000
 
 

The Headquarters' Accounting Office records the above commitment (and reserves that portion 

of the budget) for the agency's "fixed costs "at the department, branch, section, office (not 

illustrated) and expense levels.  The program (or ordering office) records commitments of the 

variable portion of their budget each time goods/services are ordered.  These entries (essentially 

the same as the fixed costs) are illustrated later under the "variable expense" section.

 
 

The above journal entry includes the cumulative affect of the five line items that

were recorded against each of the following GLA's 

 
  AGENCY / DEPARTMENT BUDGET STATUS
 
 
         
FIXED EXPENSE   AVAILABLE BUDGET COMMITTED

TOTAL 

BUDGET

SALARY   0 90,000   90,000
BUILDING RENT   0 26,600   26,600
UTILITIES   0 4,000     4,000
BOND INTEREST   0 400        400
LICENSING FEES   0 9,000     9,000
      130,000 130,000
 
 
 
 
 
 
 
 
 
 
 
(10A)  SALARIES PAID FROM ADVANCES   (10A)  SALARIES PAID FROM ADVANCES      (See JE 2)
 
SALARY EXPENSE               20,000   SALARY EXPENSE                                                  20,000
   CASH                                           20,000        CASH DISBURSEMENTS                                             20,000
 
  COMMITMENTS                                                    20,000
         EXPENDED BUDGET (CFY)                                      20,000
 
Performed work and paid salaries on projects related to advances   Same as corporate explanation.
 
 
 
(10B) EARNED ADVANCES   (10B) EARNED ADVANCES  (See JE 2)
 
ADVANCES PAYABLE                       20,000    ADVANCES PAYABLE                                             20,000 
   EARNED ADVANCE                          20,000        EARNED ADVANCES                                                  20,000
 
Earned advances payable (see JE 2 and JE 10A.   Same as corporate explanation.
 
 
 
(11) SALARIES PAID (REIMBURSABLE BASIS)   (11) SALARIES PAID (REIMBURSABLE BASIS)
 
(11A) SALARY EXPENSE   (11A) SALARY EXPENSE
 
SALARY EXPENSE                           14,000   SALARY EXPENSE                                                14,000
   CASH                                                      14,000        CASH DISBURSEMENTS                                           14,000
 
  COMMITMENTS                                                   14,000
         EXPENDED BUDGET (CFY)                                    14,000
 
Paid salaries on reimbursable projects.   Same as corporate explanation.
 
 
 
(11B) ACCOUNTS RECEIVABLE   (11B) ACCOUNTS RECEIVABLE
 
ACCOUNTS RECEIVABLE            14,000   ACCOUNTS RECEIVABLE                                  14,000
  EARNED REIMB.                              14,000         EARNED REIMBURSEMENTS                                14,000
 
Billed customers for reimbursable expenses incurred (See JV 11A above).   Same as corporate explanation (See JV 11A).
 
 
 
(11C) BAD DEBT EXPENSE   (11) BAD DEBT EXPENSE
 
BAD DEBT EXPENSE                         1,000   BAD DEBT EXPENSE                                         1,000

  ALLOWANCE FOR BAD DEBT          1,000

 

        ALLOWANCE FOR BAD DEBT                             1,000
Estimated uncollectible accounts receivable   Same as corporate explanation.
 
 
 
(12) STANDARD PAYROLL   (12) STANDARD PAYROLL
 
SALARY EXPENSE                           51,000   SALARY EXPENSE                                             51,000
   CASH                                                     51,000      CASH DISBURSEMENTS                                         51,000
 
  COMMITMENTS                                               51,000
         EXPENDED BUDGET (CFY)                                  51,000
 
Paid salaries.   Same as corporate explanation.
 
  BUDGET SUMMARY - PAYROLL 
 
AVAILABLE BUDGET COMMITMENT EXPENDED BUDGET TOTAL BUDGET
90,000  (6) 90,000
- 90,000 (9) + 90,000 (9)
- 20,000 (10A) + 20,000 (10A)
- 14,000 (11A) + 14,000 (11A)
- 51,000 (12) + 51,000 (12)
0 5,000 85,000 90,000
 
 
 
 
 
 
 
 
 
 
 
 
(13) SALARY ACCRUAL   (13) SALARY ACCRUAL
 
SALARY EXPENSE                    3,000   SALARY EXPENSE                                                3,000
  SALARY PAYABLE                         3,000      SALARY PAYABLE                                                      3,000
 
Record month end salary accrual.  (This entry is reversed the first day of the following month).   Same as corporate explanation.
 
 
 
(14) BUILDING RENT   (14) BUILDING RENT
 
LEGAL OBLIGATION   COMMITMENTS                                          26,600
       UNPAID OBLIGATIONS (CFY)                          26,600
N/A  
 

The Accounting Office records an obligation, via a formal procurement 

document (i.e. a contract) issued by the Procurement Office.

 
 
 
(14B) BUILDING RENT PAYMENT   (14B) BUILDING RENT PAYMENT
 
BUILD. RENT EXPENSE             25,000   BUILDING RENT EXPENSE                          25,000
  CASH                                                     25,000         CASH DISBURSEMENTS                                      25,000
 
  UNPAID OBLIGATIONS (CFY)                      25,000
        EXPENDED BUDGET (CFY)                                  25,000
 
Paid final building rent invoice.   Same as corporate explanation.
 
 
 
BUDGET SUMMARY - BUILDING RENT 
AVAILABLE UNPAID EXPENDED TOTAL
BUDGET COMMITMENT OBLIGATION BUDGET BUDGET
26,600 (6)    26,600
- 26,600 (9) 26,600 (9)
- 26,600 (14A) 26,600 (14A)
- 25,000 (14B) 25,000 (14B)
0 0 1,600 25,000   26,600
 
 
 
 
 
 
 
 
 
 
 
(15) 1ST QTR UTILITIES   (15) 1ST QTR UTILITIES
 
(15A) LEGAL OBLIGATION   (15A) LEGAL OBLIGATION (UTILITIES)
 
N/A   COMMITMENT                                                       4,000
       UNPAID OBLIGATIONS (CFY)                                   4,000
 
 

The Accounting Office records an obligation based on signed copies of an

obligating document received from the Procurement Office.

 
 
 
(15B) UTILITIES PAID   (15B) UTILITIES PAID
 
UTILITY EXPENSE               3,500   UTILITY EXPENSE                                                   3,500
   CASH                                                3,500         CASH DISBURSEMENTS                                              3,500
 
Paid partial utility invoice.   UNPAID OBLIGATIONS (CFY)                              3,500
        EXPENDED BUDGET (CFY)                                         3,500
 
  Same as corporate explanation.
 
 
 

BUDGET SUMMARY - UTILITIES 

AVAILABLE

BUDGET

COMMIT

MENT

UNPAID

OBLIGATION

EXPENDED

BUDGET

TOTAL

BUDGET

4,000 (6) 4,000
-4,000 (9) 4,000 (9)
- 4,000 (15A) 4,000 (15A)
- 3,500 (15B) 3,500 (15B)
500 3,500 4,000
 
 
(16A) BOND SALE   (16A) BOND SALE
 
CASH                                  28,500   BUDGET RECEIPTS                                                     28,500
  PREM.  BOND PAY                   2,500         PREMIUM ON BONDS PAYABLE                                       2,500
  BONDS PAYABLE                    26,000        BONDS PAYABLE                                                                 26,000
 
Sold bonds at a premium.   ECS - BUDGET RECEIPTS - BONDS PAYABLE        28,500
       FUNDED BUDGET                                                               28,500
 
  Same as corporate explanation.
 
 
 
(16B) ADJUSTING ENTRY   (16B) ADJUSTING ENTRY
  
N/A   UNFUNDED BUDGET                                               26,000
        ANTIC. BUDGET RECEIPT - BOND PAY.              26,000
 
 

Reduce unfunded budget account that is now funded (and backed by 

Cash in Treasury) i.e. budget receipts.

 
 
 
(16C) PAID INTEREST EXPENSE   (16C) PAID INTEREST EXPENSE
 
BOND INTEREST EXPENSE                750   BOND INTEREST EXPENSE                                  750
  CASH                                                            750        CASH DISBURSEMENTS                                            750
 
  COMMITMENTS                                                     750
       EXPENDED BUDGET (CFY)                                        750
 
Pay bond interest.   Same as corporate explanation.
 
 

Note: The accounting controls in this process (not illustrated) would prevent 

this entry from processing since: (1) the interest expense budget has been 

exceeded by $350 (750 - 400 budget).  Je 16D adjusting entry must be 

recorded first.

 
 
 
(16D) ADJUSTING ENTRY   (16D) ADJUSTING ENTRY
 
N/A   BUDGET RESERVE - CONTINGENCY                  350
       CURRENT QUARTER BUDGET                                350
 
 

Decrease the Budget Reserve account to provide the necessary budget 

resources in the current quarter, as an audit trail.

 
 
 
(16E) ADJUSTING ENTRY   (16E) ADJUSTING ENTRY
 
N/A   CURRENT QUARTER BUDGET                             350
       COMMITMENTS                                                           350
 
 

Decrease the "current quarter budget" and record commitments, 

thereby providing the necessary budget resources to process JE 16C.

 
 
   
(16F) BOND PREMIUM AMORTIZATION   (16F) BOND PREMIUM AMORTIZATION
 
PREM.  BONDS PAY.                        50   PREMIUM ON BONDS PAYABLE                         50
  BOND INT. EXP                                   50        BOND INTEREST EXPENSE                                     50
 
Amortize bond premium.   Same as corporate explanation.  See JE 16A.
 
 

 
 
BUDGET SUMMARY - INTEREST EXPENSE 

AVAILABLE

BUDGET

COMMITMENT

EXPENDED

BUDGET

TOTAL

BUDGET

400 (6) 400
- 400 (9) + 400 (9)
+ 350 (16D) 350
-350 (16E) + 350 (16E)
- 750 (16C) + 750 (16C)
0 0 750 750
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(17) SOFTWARE LICENSING AGREEMENT   (17) SOFTWARE LICENSING AGREEMENT
 
(17A) LEGAL OBLIGATION   (17A) LEGAL OBLIGATION
(LICENSING AGREEMENT)   (LICENSING AGREEMENT)
 
N/A   COMMITMENTS                                                        9,000
       UNPAID OBLIGATIONS (CFY)                                       9,000
 
 

The Accounting Office records an obligation (via a formal procurement 

document issued by the Procurement Office) detailing the terms of the 

agency agreement.

 
 
 
(17B) PREPAID LICENSING FEES   (17B) PREPAID LICENSING FEES
 
PREP. LICENS. FEES                    9,000   PREPAID LICENSING FEES                                      9,000
  CASH                                                 9,000        CASH DISBURSEMENTS                                                 9,000
 
  UNPAID OBLIGATIONS (CFY)                                 9,000
       EXPENDED BUDGET (CFY)                                             9,000
 
Prepaid licensing fees.   Same as corporate explanation.
 
 
 
 
(17C) LICENSING FEE EXPENSE   (17C) LICENSING FEE EXPENSE
 
LICENSING FEE EXP.                    2,250   LICENSING FEE EXPENSE                                        2,250
  PREPAID LIC. FEES                            2,250         PREPAID LICENSING FEES                                             2,250
 
 
 
BUDGET SUMMARY - LICENSING FEES EXP / PREPAID LICENSING FEES

AVAILABLE

BUDGET

COMMIT

MENT

UNPAID

OBLIGATION

EXPENDED

BUDGET

TOTAL

BUDGET

9,000 (6) 9,000
- 9,000 (9) 9,000 (9)
- 9,000 (17A) 9,000 (17A)
-9,000 (17B) 9,000 (17B)
0 0 0 9,000 9,000
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE TRIAL BALANCE   GAP TRIAL BALANCE
  FINANCING / FIXED EXPENSES
DEBIT CREDIT
CASH 565,250
ACCOUNTS RECEIVABLE 14,000
ALLOW. FOR BAD DEBT 1,000
PREPAID LICENSING FEES 6,750
BONDS PAYABLE 26,000
PREMIUM ON B/P 2,450
ADVANCES PAYABLE 40,000
SALARY PAYABLE 3,000
PREFERRED STOCK 500,000
PREMIUM ON STOCK 100,000
CAPITAL STOCK =  712,500 - 88,500 - 24,000
                 600,000 = 600,000
EARNED ADVANCES 20,000
EARN REIMBURSEMENTS 14,000
SALARY EXPENSE 88,000
BUILDING RENT 25,000
UTILITIES EXPENSE 3,500
BOND INTEREST EXPENSE 700
LICENSING FEES EXPENSE 2,250
BAD DEBTS EXPENSE 1,000
TOTAL 706,450 706,450
   

 

 
GLA DESCRIPTION DEBIT CREDIT
TREASURY WARRANT 600,000  
CASH TRANSFERS 60,000  
BUDGET RECEIPTS 28,500  
CASH DISBURSEMENTS     123,250
ACCOUNTS RECEIVABLE 14,000  
ALLOWANCE FOR BAD DEBT        1,000
PREPAID LICENSING FEES 6,750  
ECS CASH TRFR - ADVANCE PAY 60,000  
ECS BUDGET REC. BONDS PAY. 28,500  
ANTIC. TREASURY WARRANT 10,000  
ANTIC. BUDGET RCPT - REIMB 14,000  
BONDS PAYABLE       26,000
PREMIUM ON BONDS PAYABLE         2,450
ADVANCES PAYABLE       40,000
SALARY PAYABLE         3,000
FUNDED BUDGET

1/   21,500

 
UNFUNDED BUDGET   1/  24,000
CURRENT QUARTER BUDGET        70,000
SUBSEQUENT QTR. BUDGET      485,000
BUDGET RESERVE (CONTINGENCY)        24,650
COMMITMENTS         5,000
UNPAID OBLIGATIONS (CFY)         2,100
EXPENDED BUDGET (CFY)     123,250
EARNED ADVANCES      20,000
EARNED REIMBURSEMENTS      14,000
SALARY EXPENSE 88,000  
BUILDING RENT EXPENSE 25,000  
UTILITIES EXPENSE 3,500  
BOND INTEREST EXPENSE 700  
LICENSING FEES EXPENSE 2,250  
BAD DEBT EXPENSE 1,000  
   
TOTAL 963,700 963,700
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1/  The $2,500 difference between the funded and unfunded budget accounts indicates that $2,500

 more was collected than initially anticipated (see JE 16A & 16B).  It also indicates that if this were 

the final quarter of the fiscally year that the current quarter budget would be decreased by $21,500 - 

the amount of the funded budget debit to prevent an anti-deficiency (overspending of the budget).

 
 
 
(18) RESERVE EQUIPMENT COST   (18) RESERVE ESTIMATED COST OF EQUIPMENT
 
The initiating office reserves (or sets aside) the amount of the budget it is using to purchase equipment.  See Variable Cost Budget, JE #6  

CURRENT QUARTER BUDGET                          23,000

     COMMITMENTS                                                           23,000

 

 

The initiating office commits or decreases its budget upon recording a procurement

in the agency finance system.  In addition, the procurement request is forwarded to 

the Procurement Office to prepare a purchase order (small purchase) or a contract.

 
 
 
BUDGET SUMMARY - OFFICE EQUIPMENT 
AVAILABLE TOTAL
BUDGET COMMITMENTS BUDGET
30,000 (6) 30,000
- 23,000 (18) + 23,000 (18)
7,000 23,000 30,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(18A) LEGAL OBLIGATION (OFFICE EQUIPMENT)   (18A)  LEGAL OBLIGATION (OFFICE EQUIPMENT)
 
N/A   COMMITMENTS                                                    23,000
       UNPAID OBLIGATIONS (CFY)                                   23,000
 
 

The accounting office records Procurement's order (as detailed on the 

obligating document) to the vendor.

 
 
 
BUDGET SUMMARY - OFFICE EQUIPMENT 
AVAILABLE UNPAID TOTAL
BUDGET COMMITMENT OBLIGATIONS BUDGET
30,000(6) 30,000
- 23,000 (18) + 23,000 (18)
- 23,000 (18A) + 23,000 (18A)
7,000 0 23,000 30,000
 
 
 
 
 
 
 
 
 
 
 
 
(18B) EQUIPMENT PAID   (18B) EQUIPMENT PAID
 
OFFICE EQUIPMENT                23,000   OFFICE EQUIPMENT                                             23,000
  PURCHASE DISCOUNT                   200         PURCHASE DISCOUNT                                                       200
  CASH                                              22,800         CASH DISBURSEMENTS                                               22,800
 
  UNPAID OBLIGATIONS (CFY)                               22,800 
       EXPENDED BUDGET (CFY)                                           22,800
 
Purchase office equipment at a discount.   Same as corporate explanation.
 
 
 
BUDGET SUMMARY - OFFICE EQUIPMENT 

AVAILABLE

BUDGET

COMMITMENT

UNPAID

OBLIGATIONS

EXPENDED

BUDGET

TOTAL

BUDGET

30,000 (6) 30,000
-23,000 (18) + 23,000 (18)
- 23,000 (18A) + 23,000 (18A)
- 22,800 (18B) 22,800 (18B)
7,000 200 22,800 30,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(18C) REFUND   (18C) REFUND - OFFICE EQUIPMENT OVERPAYMENT
 
CASH                                                500   CASH COLLECTIONS                                                    500
   OFFICE EQUIPMENT                    500       OFFICE EQUIPMENT                                                           500
 
  EXPENDED BUDGET (CFY)                                          500
      CURRENT QUARTER BUDGET                                         500
 
Receive cash for office equipment overpayment.   Same as corporate explanation.
 
 
BUDGET SUMMARY - OFFICE EQUIPMENT 
         

AVAILABLE

BUDGET

COMMITMENT

UNPAID

OBLIGATION

EXPENDED

BUDGET

TOTAL

BUDGET

30,000 (6)       30,000
-23,000 (18) + 23,000 (18)      
  - 23,000 (18A) + 23,000 (18A)    
    - 22,800 (18B) +22,800 (18B)  
+ 500 (18C)     - 500 (18C)  
7,500   200 22,300 30,000
 
 
 
 
 
 
 
 
 
 
 
 
 
(18D) EQUIPMENT TRANSFER TO CONTRACTORS   (18D) OFFICE EQUIPMENT TRANSFERRED TO CONTRACTORS
 
OFFICE EQUIP. CONTRACTORS) 3,000   OFFICE EQUIPMENT (CONTRACTORS)              3,000
   OFFICE EQUIPMENT                       3,000         OFFICE EQUIPMENT                                                      3,000
 
Transfer equipment to contractors.   Same as corporate explanation.
 
 
 
(18E) DEPRECIATION   (18E) DEPRECIATION
 
DEPRECIATION EXP.                1,000   DEPRECIATION EXPENSE                                           1,000
   ACCUM. DEPREC.- EQUIP.       1,000        ACCUMULATED DEPRECIATION - EQUIPMENT        1,000
 
Record depreciation expense on office equipment.   Same as corporate explanation.
 
 
 
(18F) EQUIPMENT SALE   (18F) EQUIPMENT SALE
 
CASH                                             1,800   CASH COLLECTIONS                                             1,800
ACCUM. DEPRECIATION           400   ACCUM. DEPRECIATION - EQUIPMENT             400
   OFFICE EQUIPMENT                     2,000         OFFICE EQUIPMENT                                                       2,000
   GAIN ON SALE                                   200         GAIN ON SALE - OFFICE EQUIPMENT                          200
 
  EXPENDED BUDGET (CFY)                                  1,800
       CURRENT QUARTER BUDGET                                      1,800
 
Gain on sale of office equipment.   Same as corporate explanation.
 
 
 
BUDGET SUMMARY - OFFICE EQUIPMENT 
         

AVAILABLE

BUDGET

COMMITMENT

UNPAID

OBLIGATION

EXPENDED

BUDGET

TOTAL

BUDGET

30,000 (6)       30,000
- 23,000 (18) + 23,000 (18)      
  - 23,000 (18A) + 23,000 (18A)    
    - 22,800 (18B) 22,800 (18B)  
+ 500 (18C)     - 500 (18C)  
+ 1,800 (18F)     - 1,800 (18F)  
9,300   200 20,500 30,000
 
 
 
 
 
 
 
 
 
 
 
 
 
(19) RESERVE - TRANSPORTATION EQUIPMENT   (19) RESERVE BUDGET (TRANSPORTATION EQUIPMENT)
 
N/A   CURRENT QUARTER BUDGET                                15,000
       COMMITMENTS                                                                15,000
 
 

The initiating office commits its transportation equipment budget upon recording

 its procurement (using the GLA code and amount) in the agency finance system 

and forwarding a Procurement Request to the Procurement Office.

 
 
 
BUDGET SUMMARY - TRANSPORTATION EQUIPMENT 
   

 

AVAILABLE BUDGET COMMITMENTS

TOTAL 

BUDGET

15,000 (6) 0 15,000
- 15,000 (19) +15,000 (19)  
0 15,000 15,000
 
 
 
 
 
 
 
 
 
(19A) LEGAL OBLIGATION   (19) LEGAL OBLIGATION (TRANSPORTATION EQUIPMENT)
 
N/A   COMMITMENTS                                                   15,000
       UNPAID OBLIGATIONS (CFY)                                       15,000
 
 

The Accounting Office records Procurement's order (as detailed on the 

obligating document) to the vendor.

 
 
 
(19B) EQUIPMENT RECEIVED/ NOT PAID   (19B) TRANSPORTATION EQUIPMENT RECEIVED / NOT PAID
 
TRANSPORT. EQUIP.                 15,000   TRANSPORTATION EQUIPMENT                       15,000
  ACCOUNTS PAYABLE                 15,000        ACCOUNTS PAYABLE                                                   15,000
 
Received transportation equipment.   Same as corporate explanation.
 
 
 
(20) CASH COLLECTIONS (REIMBURSEMENTS)   (20) CASH COLLECTIONS (REIMBURSEMENTS)
 
CASH                                           5 ,000   BUDGET RECEIPTS                                                         5,000
  ACCOUNTS RECEIVABLE         5,000       ACCOUNTS RECEIVABLE                                                 5,000
 
  ECS - BUDGET RECEIPTS - REIMBURSEMENTS      5,000
       FUNDED BUDGET                                                               5,000
 
Received cash on accounts receivable - reimbursements.  See JE 11B   Same as corporate explanation.
 
 
 
  (20A)  ADJUSTING ENTRY
 
  UNFUNDED BUDGET                                                  5,000
        ANTICIPATED BUDGET RECEIPT (REIMB.)              5,000
 
  Adjust that portion of the budget that is no longer unfunded.
 
 
 
 
(21) RESERVE BUDGET (TRAVEL EXPENSES)   (21) RESERVE BUDGET (TRAVEL EXPENSES)
 
N/A   CURRENT QUARTER BUDGET                               24,000
       COMMITMENTS                                                                24,000
 
 

The initiating office commits (or reserves) decreases its available travel 

budget.

 
 
 
BUDGET SUMMARY - TRAVEL 
AVAILABLE TOTAL
BUDGET COMMITMENTS BUDGET
24,000  (6) 0 24,000
- 24,000 (21) + 24,000 (21)
0 24,000 24,000
 
 
 
 
 
 
 
 
 
 
 
(21A) RECORD OBLIGATION   (21A) RECORD OBLIGATION
 
N/A   COMMITMENTS                                            24,000
       UNPAID OBLIGATIONS (CFY)                             24,000
 
  The accounting office records the travel related obligations
 
 
 
BUDGET SUMMARY - TRAVEL 
AVAILABLE UNPAID TOTAL
BUDGET COMMITMENT OBLIGATION BUDGET
24,000 (6) 0 24,000
- 24,000 (21) + 24,000 (21)
- 24,000 (21A) + 24,000 (21A)
0 0 24,000 24,000
 
 
 
 
 
 
 
 
 
 
(21B) TRAVEL ADVANCE   (21B) TRAVEL ADVANCE
 
TRAVEL ADVANCE                 24,000   TRAVEL ADVANCE                                                          24,000
  CASH                                              24,000       CASH DISBURSEMENTS                                                       24,000
 
  UNPAID OBLIGATIONS (CFY)                            24,000
       EXPENDED BUDGET (CFY)                                         24,000
 
Disbursed cash for travel advance   Same as corporate explanation.
 
 
 
BUDGET SUMMARY -  TRAVEL 

AVAILABLE

BUDGET

COMMIT

MENTS

UNPAID

OBLIGATION

EXPENDED

BUDGET

TOTAL

BUDGET

+ 24,000 (6)

- 24,000 (21) +24,000 (21)
-24,000 (21A) +24,000 (21A)
-24,000 (21B) +24,000 (21B)
0 0 0 24,000 24,000
 
 
 
 
 
 
 
 
 
 
 
 
 
(21C) TRAVEL VOUCHER (EXPENSE APPLIED)   (21C) TRAVEL VOUCHER (EXPENSE APPLIED)
 
TRAVEL EXP.                            18,500   TRAVEL EXPENSE                                                              18,500
  TRAVEL ADVANCE                     18,500        TRAVEL ADVANCE                                                               18,500
 
Record travel expenses incurred (where expenses to be applied are les that the initial advance i.e. 24,000   Same as corporate explanation.
 
  NOTE:
 

If the expense applied was greater than the advance (assume $26,000), the 

following journal entry is made.  This journal entry is for illustration purposes 

only and is not included  in the Appendix B trial balance.

 
 
 
(22) RESERVE BUDGET (ADMINISTRATIVE SUPPLIES)   (22) RESERVE BUDGET (ADMINISTRATIVE SUPPLIES)
 
N/A   CURRENT QUARTER BUDGET                                        1,000
      COMMITMENTS                                                                       1,000
 
 

The initiating office commits or reserves its administrative supplies budget

upon recording its procurement (using the GLA code and amount) in the 

agency's financial system.

 
 
BUDGET SUMMARY - ADMINISTRATIVE SUPPLIES 

AVAILABLE

BUDGET

COMMITMENTS

TOTAL

BUDGET

1,000 (6) 1,000
-1000 (22) +1,000 (22)
0 1,000 1,000
 
 
 
 
 
 
 
 
 
 
 
(22A) ADMINISTRATIVE SUPPLIES RECVD / PAID   (22A) ADMINISTRATIVE SUPPLIES RECEIVED / PAID
 
ADMIN. SUPP. EXP.                    1,000   ADMINISTRATIVE SUPPLIES EXPENSE              1,000
CASH                                                    1,000       CASH DISBURSEMENTS                                                   1,000
 
  COMMITMENTS                                                       1,000
      EXPENDED BUDGET (CFY)                                               1,000
 
 

The Accounting Office pays for the administrative supplies ordered 

(typically with a credit card).  There is no formal obligation documentation.

 
 
 
BUDGET SUMMARY - ADMINISTRATIVE SUPPLIES 
         

AVAILABLE

BUDGET

COMMITMENTS

UNPAID

OBLIGATION

EXPENDED

BUDGET

TOTAL

BUDGET

1,000 (6)       1,000
- 1,000 (22) + 1,000 (22)      
  - 1,000 (22A)   +1,000 (22A)  
0 0 0 1,000 1,000
 
 
 
 
 
 
  Copyright 1999 Larry Fisher