APPENDIX C     

PRINT - LANDSCAPE FORMAT / COLOR

CORPORATE

YEAR END CLOSING ENTRIES

DECEMBER 31, 2001

 

GOVERNMENT ACCOUNTING PROTOTYPE

YEAR END CLOSING ENTRIES

DECEMBER 31, 2001

(1) CLOSE INCOME AND EXPENSES (1) CLOSE INCOME AND EXPENSES
GAIN ON SALE 200 GAIN ON SALE 200
EARNED ADVANCES 20,000 EARNED ADVANCES 20,000
EARNED REIMBURSEMENT  14,000 EARNED REIMBURSEMENT 14,000
PROFIT & LOSS 106,750 PROFIT & LOSS 106,750
   SALARY EXPENSE 88,000       SALARY EXPENSE 88,000
   BUILDING RENT EXP. 25,000       BUILDING RENT EXPENSE 25,000
   UTILITY EXPENSE 3,500       UTILITY EXPENSE 3,500
   BOND INTEREST EXP. 700       BOND INTEREST EXPENSE 700
   LICENSING FEE EXPENSE 2,250       LICENSING FEE EXPENSE 2,250
   TRAVEL EXPENSE 18,500       TRAVEL EXPENSE 18,500
   ADMIN. SUPPLY EXP. 1,000       ADMIN. SUPPLY EXPENSE 1,000
   DEPRECIATION EXPENSE 1,000       DEPRECIATION EXPENSE 1,000
   BAD DEBT EXPENSE 1,000       BAD DEBT EXPENSE 1,000

Close income & expense general ledger accounts into profit and loss.

Close income & expense general ledger accounts into profit and loss.

(2) CLOSE PROFIT & LOSS (2) CLOSE PROFIT & LOSS
RETAINED EARNINGS 106,750 RETAINED INCOME / EXPENSE 106,750
  PROFIT & LOSS 106,750       PROFIT & LOSS 106,750
 

Close profit and loss into Retained Earnings.

 

Close profit and loss into Retained Income / Expense.  Note, Retained 

 Income / Expense is used in lieu of Retained Earnings because of the 

varied nature of government appropriations. For example, General Fund appropriation expenses will always exceed income.  However, Trust 

Fund appropriations, for example, may have income exceed expenses 

or expenses exceed income during the life of this appropriation type -- 

the Social Security Trust fund is a good example.  Thus, it is necessary 

to account for the cumulative total of income or expenses over the life 

of the appropriation.

(3) CLOSE UNFUNDED BUDGET-RELATED GLA'S (3) CLOSE UNFUNDED BUDGET-RELATED GLA'S
N/A UNFUNDED BUDGET 19,000
  ANTICIPATED TW (SUPPLEMENTAL) 10,000
  ANTICIPATED BUDGET RCPT. REIMB. 9,000

Close all accounts associated with the unfunded portion 

of the budget.

(4) CLOSE FUNDED BUDGET / RELATED GLA'S (4) CLOSE FUNDED BUDGET / RELATED GLA'S
CURRENT QTR. BUDGET 9,300
SUBSEQUENT QTR. BUDGET 485,000
BUDGET RES. CONTINGENCY 24,650
COMMITMENTS 5,000
    FUNDED BUDGET 16,500
    BUDGET (UNOBLIGATED C/O) 507,450

Close all budget-related accounts with available moneys into 

next (fiscal) years funded budget account for apportionment 

and redistribution.

(5) CLOSE CASH INTO CASH (END OF FISCAL YR (5) CLOSE CASH INTO CASH (END OF FISCAL YEAR)
CASH (END OF FISCAL YEAR) 524,750
N/A CASH DISBURSEMENTS 171,050
     TREASURY WARRANT 600,000
     CASH TRANSFERS 60,000
     BUDGET RECEIPTS 33,500
     CASH COLLECTIONS 2,300
Close all cash-related accounts into cash (end of fiscal year).
  Copyright 1999 Larry Fisher