(Journal entries - set of transactions regarding contracts)
The Federal Bureau of Building Construction (BBC) receives an annual appropriation to perform construction activities.
BBC does not use commitment accounting; instead, it obligates funds upon the award of contracts Prepare budgetary and proprietary journal entries to record the following transactions.
a. BBC received an appropriation of $2,000,000
b. The Office of Management and Budget apportioned $500,000 of the appropriation to the Department of Domestic Construction, which oversees the BBC
c. The Department allotted the entire $500,000 apportionment to the BBC.
d. BBC awarded a building construction contract for $300,000
e. The contractor completed construction of the building. Because of a change order, however, the total cost of the work was $324,000 . BBC accepted the work and recorded the asset and the invoice for $324,000
f. BBC sent a disbursement schedule to the Treasury requesting payment of the $324,000
g. Treasury notified BBC that payment was made to the contractor for $324,000
h. At year-end, BBC recorded six months' depreciation ($16,200) on the building
a. Budgetary
Other appropriations realized 2,000,000
Unapportioned authority 2,000,000
Proprietary
Fund balance with Treasury 2,000,000
Unexpended appropriations -
Appropriations received 2,000,000
b. Budgetary
Unapportioned authority 500,000
Apportionments 500,000
c. Budgetary
Apportionments 500,000
Allotments - realized resources 500,000
d. Budgetary
Allotments - realized resources 300,000
Undelivered orders – obligations, unpaid 300,000
e. Budgetary
Undelivered orders – obligations, unpaid 300,000
Allotments - realized resources 24,000
Delivered orders – obligations, unpaid 324,000
Proprietary
Buildings 324,000
Accounts payable 324,000
Unexpended appropriations - used 324,000
Expended appropriations 324,000
f. Proprietary
Accounts Payable 324,000
Disbursements in transit 324,000
g. Budgetary
Delivered orders – obligations, unpaid 324,000
Delivered orders – obligations, paid 324,000
Proprietary
Disbursements in transit 324,000
Fund balance with Treasury 324.000
h. Proprietary
Program costs - depreciation 16,200
Accumulated depreciation 16,200
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