Question

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

The following schedule shows the amounts related to supplies that a city debited and credited to the indicated accounts during a year (not necessarily the year‐end balances), excluding closing entries. The city records its budget, encumbers all its expenditures, and initially vouchers all payments. All revenue was collected in cash. Some information is missing. By reconstructing the entries that the city made during the year, you are to determine the missing data and construct the journal entries (in summary form), excluding closing entries.

	(in thousands)
	Debits	Credits
Cash	$117	$ ?
Estimated revenues	?	0
Revenues	0	?
Vouchers payable	70	54
Appropriations	0	?
Encumbrances	?	58
Expenditures	?	0
Reserved for encumbrances	?	93
Fund balance—unassigned	115	120

Answer 1

Account Titles and Explanation	Debit	Credit
Estimated revenues	$120
Fund balance—unassigned		$120
(To record Estimated revenues based on credit to fund balance)
Cash	117
Revenues		117
(To record Revenue, as all revenue received in Cash)
Fund balance—unassigned	115
Appropriations		115
(To record estimated expenses )
Encumbrances	93
Reserve for encumbrances		93
(To record Encumbrances based on Reserve for encumbrances)
Vouchers payable	$70
Cash		$70
(To record payment of vouchers based on Debit to Vouchers payable)
Expenditure	54
Vouchers payable		54
(Booking of expenditures)
Reserve for encumbrances	58
Encumbrances		58
(To record Reverse of encumbrances)

	(in thousands)
	Debits	Credits
Cash	$117	$70
Estimated revenues	120	0
Revenues	0	117
Vouchers payable	70	54
Appropriations	0	115
Encumbrances	93	58
Expenditures	54	0
Reserved for encumbrances	58	93
Fund balance—unassigned	115	120