AISH_ACCT321_1

Assignment (1)

Deadline: Saturday 14/03/2026 @ 23:59

For Instructors Use only

Instructions PLEASE READ THEM CAREFULLY

• The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.

Assignment Question(s):(Marks 10)

Question 1:(3 Marks)

Q.1 The council of the Town of Tulia approved the 2023 budget as follows:

Budgeted 2023 revenues from:

Property taxes$5,000,000

Sales taxes$1,000,000

Appropriations for 2023:

Salaries$4,600,000

Materials$1,200,000

Equipment$100,000

During 2023, the towns mayor presented the council with a budget revision to increase the amount of appropriation for salaries by $10,000.The council approved this budget revision.

Required:

a.Prepare the general journal entry necessary to initially record the budget.

b.Prepare the general journal entry necessary to record the budget revision.

Question 2:(3.5 Marks)

Q.2 Differentiate between Capital Projects Funds (CPF), Debt Service Funds (DSF)

Question 3:(3.5 Marks)

Q.3 Prepare journal entries to record the following transactions for a town in 2018. The Town records encumbrances only for its Supplies appropriation.

a. The town adopted the following budget for the year:

Revenues:

Property taxes$412,500

Licenses and fees$52,500

Appropriations:

Salaries$382,500

Supplies$ 60,000
Interest$2,250

b. Property tax bills amounting to $412,500 were sent to the property
owners.

c. Because property taxes were not due to be received for several months
and the town needed cash to finance its activities, the town borrowed
$150,000 from a local bank using tax anticipation notes.

d. The town paid salaries in the amount of $112,500.

e. The town sent out two purchase orders for supplies: purchase order A for
$9,000 and purchase order B for $7,500.

f. The town received $195,000 from property owners in payment of their
property taxes.

g. The town repaid the bank on its borrowing in transaction c. The amount
paid was $151,500, which included interest of $1,500.

h. The town collected $22,500 for fishing licenses.

i. The town received the supplies ordered on purchase order A in
transaction e. All the supplies arrived in good condition and the invoice
for $9,150 was approved for payment.

j. The town Treasurer paid the invoice in transaction i for $9,150.