The Star Exploration Agency, a unit of the Space Department, was established by Congress to begin operations at the beginning of the fiscal year 2014. Following are the agency's transactions during October, its first month of operations: October 1-Congress passed and the president approved a $1,000,000 appropriation for this agency. October 1-Of the amount appropriated, $950,000 was apportioned by the OMB. October 1- The Space Department alotted the agency $100,000 to carry out its October operations. October 1- Purchase requests were made for materials and supplies, estimated to cost $88,000. October 4- Purchase orders were placed for materials and supplies, estimated to cost $85,000. The other requests (for $3,000) were cancelled. October 10-Materials and supplies previously ordered were received, together with invoices for $80,000. All items received were placed in inventory. The remaining items (for $5,000) will be received at a later date. October 14-A disbursement schedule was sent to the Treasury, requesting that it pay invoices amounting to $80,000. October 24- The Treasury informed the agency that it had paid invoices amounting to $76,000. October 31- An inventory count showed that $15,000 of materials and supplies was on hand. The rest was used in operations.
The Star Exploration Agency, a unit of the Space Department, was established by Congress to begin operations at the beginning of the fiscal year 2014. Following are the agency's transactions during October, its first month of operations: October 1-Congress passed and the president approved a $1,000,000 appropriation for this agency. October 1-Of the amount appropriated, $950,000 was apportioned by the OMB. October 1- The Space Department alotted the agency $100,000 to carry out its October operations. October 1- Purchase requests were made for materials and supplies, estimated to cost $88,000. October 4- Purchase orders were placed for materials and supplies, estimated to cost $85,000. The other requests (for $3,000) were cancelled. October 10-Materials and supplies previously ordered were received, together with invoices for $80,000. All items received were placed in inventory. The remaining items (for $5,000) will be received at a later date. October 14-A disbursement schedule was sent to the Treasury, requesting that it pay invoices amounting to $80,000. October 24- The Treasury informed the agency that it had paid invoices amounting to $76,000. October 31- An inventory count showed that $15,000 of materials and supplies was on hand. The rest was used in operations.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The Star Exploration Agency, a unit of the Space Department, was established by Congress to begin operations at the
beginning of the fiscal year 2014. Following are the agency's transactions during October, its first month of operations:
October 1-Congress passed and the president approved a $1,000,000 appropriation for this agency.
October 1-Of the amount appropriated, $950,000 was apportioned by the OMB.
October 1- The Space Department alotted the agency $100,000 to carry out its October operations.
October 1- Purchase requests were made for materials and supplies, estimated to cost $88,000.
October 4- Purchase orders were placed for materials and supplies, estimated to cost $85,000. The other requests (for
$3,000) were cancelled.
October 10-Materials and supplies previously ordered were received, together with invoices for $80,000. All items
received were placed in inventory. The remaining items (for $5,000) will be received at a later date.
October 14- A disbursement schedule was sent to the Treasury, requesting that it pay invoices amounting to $80,000.
October 24- The Treasury informed the agency that it had paid invoices amounting to $76,000.
October 31- An inventory count showed that $15,000 of materials and supplies was on hand. The rest was used in
operations.
Use the preceding information to do the following:
a. Prepare journal entries to record the events of October
b.Prepare a preclosing trial balance( should have a Budgetary account and Proprietary account section)
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