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Compose a 750 words essay on Accounting and Reporting Principles. Needs to be plagiarism free!Download file to see previous pages... In the same audit, the revenues should as well be traced so they ca
Compose a 750 words essay on Accounting and Reporting Principles. Needs to be plagiarism free!
Download file to see previous pages...In the same audit, the revenues should as well be traced so they can give opinions as to whether all cash received as taxes or government revenues are properly recorded and remitted to the town’s treasury. The journal entries below record the issuance by the town of a three-year note to purchase police vehicles. The journal entries recorded in the general journals of the General Fund differ from those recorded in the general journals for governmental activities at the government-wide level. The General Fund general journal reflects the creation of temporary accounts – namely, Other Financing Sources-Proceeds of Three-Year Note and Expenditures-Capital Outlay – upon the issuance of notes and the purchase of the vehicles. On the other hand, the government-wide level general journal reflects the recording of assets and liabilities, namely the Transportation Equipment and the Notes Payable. This is because the accounting books of the General Fund are mostly concerned only with the inflow and outflow of the current financial resources of the town. Meanwhile, the books for the government-wide entity should show all transactions affecting the net assets of the town. thus, the specific accounts such as Transportation Equipment, Notes Payable, then subsequently, the Depreciation Expense and Interest Expense are used.
General Ledger
Debit
Credit
General Fund:
Cash
120,000
Other Financing Sources-Proceeds of Three-Year Note
120,000
To record the issuance of the 3-year note.
Expenditures - Capital Outlay
120,000
Cash
120,000
To record the purchase of 4 police vehicles.
Governmental Activities, Government-wide:
Cash
120,000
Notes Payable
120,000
To record the issuance of the 3-year note.
Transportation Equipment
120,000
Cash
120,000
To record the purchase of 4 police vehicles.
