government Accounting
Section (2)
Assistant lecture
Mona shemes
1
Family services, a small social service non-profit agency, began operations on
January 2007 with $40,000 cash and $150,000 worth of equipment, on which
$60,000 was owed on a note to City Bank. The equipment was expected to
have a remaining useful life of 15 years with no salvage value. During its first
year of operations, ending December 2007, Family services paid or
accrued the following:
1. Salaries and other personnel costs, $100,000.
2. Rent and utilities $24,000.
3. Debt service – interest $5,500 and payment on long term note principal
$10,000.
4. Capital outlay- additional equipment purchased January $30,000
expected to last 6 years and have a $6,000 salvage value.
5. Other current operating items paid with cash, $4,500.
Required:
Compute for the Family Services agency, for the year ended December 2007,
its total (a) expenses (b) expenditures.
2
Expenses
expenditures
Salaries and other personnel costs
100,000
100,000
Rent and utilities
24,000
24,000
Interest on note
5,500
5,500
Note principal payment
------
10,000
Capital outlay
-------
30,000
Depreciation of equipment
14,000
-------
Other
4,500
4,500
Total
$148,000
$174,000
Depreciation of equipment
i) $150,000/15
=
$10,000
ii) ($30,000-$6,000)/6 =
4,000
14,000
3
Balance sheet
state budget
‫موازنة الدولة‬
Definition
Financial statements indicate Financial
statements
assets firm owns and how that indicate expenditure and
assets financed
‫قائمةةمالاة ةةماى ة اعلةةااصولة تاصة ةةاا‬
‫ىم لكهااصةشركمافااف رةالع نم‬
Components Assets
Liabilities
resources
to
national task
achieve
Time
Certain period (31/12)
Revenue (resources)
Expense (uses)
‫صشةةةةةةة الةةةةةةة صى اصة ةةةةةةةةما ص ص ا‬
‫صس خ لهاا ا‬
During the following year
Data
Actual data or figure
estimate data or figure
or
estimate resources or
expenditure
4