[thebigguy1992]

Are these pretty much all the journal entries we need to know for governmental?

Opening budgetary entry:

Dr. Estimated revenues control

Cr. appropriations control

Cr/Dr. Budgetary fund balance (plug)

Closing budgetary entry:

Dr. Appropriations control

Cr. estimated revenues control

Cr/Dr. budgetary fund balance (plug)

When purchase order is approved:

Dr. Encumbrances Control

Cr. Fund Balance – Reserve for encumbrances

When purchase order is filled:

Dr. Fund balance – reserve for encumbrances

Dr. Encumbrances control

Then a final journal entry for the actual expenditure? Includes debit to expenditure and what else?

[Titleistg0lfer]

I thought when you a purchase order was approved you:

DR Encumbrances
CR Budgetary Control

and when you receive the actual purchase you reverse the budget:

DR Budgetary Control
CR Encumbrances

and record the activity:

DR Expenditures
CR Vouchers Payable

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[Excel14]

I thought the encumbrance entry was as follows:

Encumbrances xxxxx

Encumbrances Outstanding xxxxx

That is straight from my Gleim book.

BEC (2/28/16) ----- 78
FAR (09/10/16)-----
AUD
REG

CIA, CGAP, CFE

[Titleistg0lfer]

I didn't even know there was such thing as an encumbrances outstanding account? I know if you have outstanding encumbrances at the end of the year these only need to be disclosed in the notes. Am I thinking about this wrong?

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[Excel14]

Gleim shows Encumbrance Outstanding as the credit side of it. Just stating what it shows. Nowhere does it show a Budgetary Control account. It does say that any outstanding encumbrances at the end of the year are listed in the notes, however. All budgetary accounts are closed out, which includes reversing the encumbrance entry.

BEC (2/28/16) ----- 78
FAR (09/10/16)-----
AUD
REG

CIA, CGAP, CFE

[Titleistg0lfer]

That's so strange that in Becker it's showing Budgetary Control….I just want to make sure on the test I'm using the correct accounts.

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[Titleistg0lfer]

https://www.another71.com/cpa-exam-forum/topic/can-someone-please-help-clear-up-the-concept-of-appropriationsencumbrances-far

They show the entries I posted on this page as well..

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[Excel14]

I had the same JE listed for the original budget set up, but when it came to the encumbrances, that is what Gleim has. In fact, I had a practice SIM which used those same accounts for the encumbrances. Sorry, don't mean to confuse.

BEC (2/28/16) ----- 78
FAR (09/10/16)-----
AUD
REG

CIA, CGAP, CFE

[refinnej]

Try this

https://sites.google.com/site/farnotes/gas-34/journal-entries–fund-based-vs-government-wide

BEC - PASSED
REG - PASSED
AUD - PASSED
FAR - Not scheduled yet

[Author]

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