Question

Missing data can be derived, and journal entries constructed, from information in the accounts.

The following schedule shows the amounts (in thousands) related to expenditures that a city welfare department debited and credited to the indicated accounts during a year (not necessarily the year‐end balances), excluding closing entries. The department records its budget, encumbers all its expenditures, and initially vouchers all payments. Some information is missing. You are to determine the missing data and construct all entries (in summary form), excluding closing entries, that the department made during the year.

	(in thousands)
	Debit	Credit
Cash	$ 0	$28
Vouchers payable	?	?
Estimated expenditures (appropriations)	0	55
Encumbrances	?	?
Expenditures	30	0
Reserve for encumbrances	32	50
Fund balance—unassigned	?	0

Answer 1

Account Titles and Explanation	Debit	Credit
Fund balance - Unassigned	$55
Estimated expenditures (Appropriations)		$55
(To record the budgeted expenditures)
Encumbrances	50
Reserve for encumbrances		50
(To record encumbrances based on credits to reserve for encumbrances)
Expenditures	30
Vouchers Payable		30
(To record expenditures based on debits to expenditure account)
Reserve for encumbrances	32
Encumbrances		32
(To reverse encumbrances based on debits to reserve for encumbrances)
Vouchers payable	28
Cash		28
(To record payment of vouchers (based on credits to cash account )

	(in thousands)
	Debit	Credit
Cash	$ 0	$28
Vouchers payable	28	30
Estimated expenditures (appropriations)	0	55
Encumbrances	50	32
Expenditures	30	0
Reserve for encumbrances	32	50
Fund balance—unassigned	55	0