CHAPTER VII GENERAL JOURNAL ENTRIES. Table of Journal Entries by Type of Transaction VII 2-3. Overview of Accounting Activities VII 4

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1 CHAPTER VII GENERAL JOURNAL ENTRIES The following pages have examples of the types of General Journal entries common to school districts. They are presented in a standard accounting format so that the full entry can be visualized. Districts who are members of the Washington Schools Information Processing Cooperative (WSIPC) will understand that many of these entries are generated as part of the overall system approach and should refer to the manuals they provide for guidance. For debit and credit transfer objects of expenditure journal entries, see Chapter VI - Expenditures. NOTE: The Table of Journal Entries by Type of Transaction, list the journal entries alphabetically by type of transaction. The number of each entry is listed under the appropriate fund. Example: s Payable - General Fund (GF) - entries #67 through #70. CH SEC PAGE Table of Journal Entries by Type of Transaction VII 2-3 Overview of ing Activities VII 4 General Fund VII GF 1-26 Capital Projects Fund VII CPF 1-10 Debt Service Fund VII DSF 1-8 Associated Student Body Fund VII ASB 1-8 Transportation Vehicle Fund VII TVF 1-8 Trust Fund VII TF 1-6 Refunded/Refunding Bond Redemption Fund VII RBF General Long Term Debt Group VII GLTDAG 1-6 General Fixed Assets Group VII GFAAG NEW VII 1

2 TYPE OF TRANSACTION GF CPF DSF ASB TVF TF RBF GLTDAG GFAAG s Payable Accrual for Payroll 85 Accrued Interest 20 Adjustments - Prior Period or Year Material Errors Adjustments - Prior Period or Year - Imaterial Errors See Expenditures Budget Entry/Entries Budget Entry/Entries - Modifications 4-5 Cash Imprest Cash - Transfer to County Treasurer 4 Closing Entry/Entries Closing Entry/Entries - Expendable and Nonexpendable Trusts Closing Entry/Entries - Nonxpendable Trusts Collateral Entry/Entries - Fixed Assets Construction in Progress Collateral Entry/Entries - Fixed Assets - 7 ASB Fund Collateral Entry/Entries - Fixed Assets - 4 General Fund Collateral Entry/Entries - Fixed Assets Transportation Vehicle Fund Collateral Entry/Entries - Long-Term Debt - Capital Projects Fund Collateral Entry/Entries - Long-Term 2-9 Debt - Debt Service Fund Collateral Entry/Entries - Long-Term Debt - General Fund Collateral Entry/Entries - Long-Term 12 Debt - Transportation Vehicle Fund Contracts Payable 13 Contracts Payable - Long-Term Deferred Compensation Encumbrances NEW VII 2

3 TYPE OF TRANSACTION GF CPF DSF ASB TVF TF RBF GLTDAG GFAAG Expenditures Expenditures - Bond Redemption Expenditures - Expendable Trusts 14 Expense - Nonexpendable Trusts 15 Fixed Assets - Purchase Fixed Assets - Sale 8 Fund Balance - Reservation 3 Interfund Receivables/Payable and Transfers Inventory - Fixed Assets 9-10 Inventory - Food Services - Perpetual Method Inventory - Food Services - Periodic Method Inventory - Supplies and Materials Periodic Method Inventory - Supplies and Materials Perpetual Method Investments Investments - Expendable Trusts 9-10 Investments - Nonexpendable Trusts Opening Entry Opening Entry - Expendable Trusts 1 Opening Entry - Nonexpendable Trusts 2 Prepaid Items Revenues Revenues - Expendable Trusts 16 Revenues - Other Financing Sources Revenues - Property Tax Revenues - State Matching Self-Insured Industrial Insurance Unemployment Benefits Reimbursement District Not in Pool Zero-Coupon Bonds 11b VII 3

4 OVERVIEW OF ACCOUNTING ACTIVITIES IN THE BUSINESS OFFICE INITIAL JOURNAL GENERAL DOCUMENTS ENTRIES LEDGER ACCOUNTS RECORDED POSTED REPORTED IN... TO... ON... GENERAL JOURNAL CASH SCHOOL SPECIAL DISTRICT JOURNALS FINANCIAL STATEMENT REVENUE EXPENDITURES NEW VII 4

5 CHAPTER VII SECTION VII-GF GENERAL FUND JOURNAL ENTRIES General Number Title and Description Debits Credits OPENING ENTRY 200 Imprest Cash Cash on Hand Cash on Deposit with Co. Treasurer 1, Taxes Receivable 10, Due From Other Governmental Units s Receivable Inventories-Supplies & Materials Inventories - Lunchroom Inventories - USDA Commodities Prepaid Items Investments Investment-Deferred Compensation Warrants Outstanding s Payable Contracts Payable - Current Accrued Salaries Payroll Deductions and Taxes Payable Deferred Compensation Payable Estimated Unemployment Benefits Payable Deferred Revenue Deferred Revenue - Taxes Receivable 10, Reserved for Inventory Unreserved, Undesignated Fund Balance 841 [1] To record the General Fund opening entry as of September 1, 19XX. This represents the beginning trial balance NEW VII GF 1

6 Number Title and Description Debits Credits BUDGET ENTRIES 510 Estimated Revenues 47, Estimated Other Financing Sources Appropriated Fund Balance Appropriations for Expenditures 47, Appropriations for Other Financing Uses 250 [2] To record the annual budget of the General Fund as adopted by the board of directors for the fiscal year 19XX. 890 Unreserved, Undesignated Fund Balance Reserved for Debt Service Reserved for Inventory 500 [3] To record the establishment of restrictions on fund balance, adopted in the budget for the replenishment of inventory and for the future payment of debt. ** Collateral entry is recorded in the General Long-Term Debt Group, see entry #13. BUDGET ENTRIES - MODIFICATIONS 510 Estimated Revenue Appropriations 20 [4] To record budget extension due to unanticipated revenues and increase existing appropriations NEW VII GF 2

7 Number Title and Description Debits Credits 515 Estimated Other Financing Sources Appropriated Fund Balance Appropriations for Other Financing Uses 40 [5] To record budget extension due to unanticipated other financing sources and to increase estimated other financing uses. REVENUES - PROPERTY TAX 310 Taxes Receivable 6, Deferred Revenue - Taxes Receivable 6,230 [6] To record the property taxes levied for the General Fund in the tax year 19XX. 240 Cash on Deposit with Co. Treasurer 14, Revenues 14,950 [7] To record property taxes received as reported by the County Treasurer. 760 Deferred Revenue-Taxes Receivable 14, Taxes Receivable 14,950 [8] To record the reduction in Taxes Receivable as a result of property tax collections NEW VII GF 3

8 Number Title and Description Debits Credits 960 Revenues Cash on Deposit with Co. Treasurer 17 [9] To record the refund of collected property taxes as reported by the County Treasurer. REVENUES [10] 240 Cash on Deposit with Co. Treasurer 36, Revenues 36,580 To record revenues, except property taxes, collected directly by the County Treasurer and not previously established as a receivable. REVENUES - OTHER FINANCING SOURCES [11] 340 s Receivable 7, Revenues 7, Other Financing Sources 100 To record revenues and other financing sources that are being established as receivables and are available. (The $100 represents sources from the sale of equipment.) NEW VII GF 4

9 Number Title and Description Debits Credits [12] 230 Cash on Hand Revenues Other Financing Sources 20 To record revenues from cash receipts. (The $20 represents sources from the sale of equipment.) [13] 240 Cash on Deposit with Co. Treasurer Cash on Hand 264 To record the remittance of cash to the County Treasurer. [14] 960 Revenues Warrants Outstanding 5 To record the refund of revenues when revenues were received by the school district. [15] 330 Due From Other Governmental Units s Receivable Deferred Revenue Revenue 100 To record accounts receivable from sources other than property taxes. The deferred revenues that are being established in s Receivable are not available for revenue accrual NEW VII GF 5

10 Number Title and Description Debits Credits [16] 230 Cash on Hand Cash on Deposit with Co. Treasurer s Receivable 150 To record the collection of various accounts receivable established in entry #13. See collateral entry #17. [17] 750 Deferred Revenue Revenue 150 To record as revenue, the collection of various accounts receivable. See previous entries #15 and # Deferred Revenue s Receivable 20 [18] To record adjustments to accounts receivable. EXPENDITURES [19] 530 Expenditures 7, Accrued Salaries 5, Payroll Deduct. and Taxes Payable 1,400 To record monthly payroll and payroll deductions NEW VII GF 6

11 Number Title and Description Debits Credits [20] 530 Expenditures Payroll Deduct. and Taxes Payable 350 To record employer's share of payroll and state employee's retirement. [21] 605 Accrued Salaries 5, Payroll Deductions and Taxes Payable 1, Warrants Outstanding 7,418 To record payment of accrued salaries, and payroll deductions and taxes payable. [22] 530 Expenditures 37, s Payable 37,000 To record amounts expended other than payroll during the current period. [23] 601 s Payable 37, Warrants Outstanding 37,060 To record issuance of warrants for amounts previously accrued. See entry #1 for prior year accrual of $60 and entry #22 for current year accrual of $37, NEW VII GF 7

12 Number Title and Description Debits Credits [24] 230 Cash on Hand Expenditures 5 To record refunds of expenditures to the school district. The credit to expenditure is to the same program/activity/object that was used for the original expenditure. [25] 241 Warrants Outstanding Expenditures 3 To record voided or cancelled warrants. ENCUMBRANCES [26] 520 Encumbrances Reserved for Encumbrances 300 To record the reestablishment of encumbrances that were cancelled at the end of the prior year, but are still considered open. This entry is made soon after the beginning of the current fiscal year. [27] 520 Encumbrances 8, Reserved for Encumbrances 8,000 To record the issuance of purchase orders, contracts, and payroll. Encumbrances are established on a routine basis at the time of issuance and not once a year as this entry indicates NEW VII GF 8

13 Number Title and Description Debits Credits [28] 820 Reserved for Encumbrances 7, Encumbrances 7,000 To record the liquidation of encumbrances by the payment of vouchers or the cancellation of unneeded encumbrances. CASH - IMPREST [29] 200 Imprest Cash Warrants Outstanding 5 To record the establishment of an imprest account or to increase an existing imprest account. If a treasurer's check is used, credit account 240-Cash on Deposit with County Treasurer. [30] 530 Expenditures Warrants Outstanding 4 To record the replenishment of an imprest account for audited expenditures. [31] 240 Cash on Deposit with County Treasurer Imprest Cash 1 To record the return of an imprest account when the account is abolished or reduced NEW VII GF 9

14 Number Title and Description Debits Credits INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS [32] 350 Interfund Loans Receivable Cash on Deposit with County Treasurer 150 To record a loan to another fund (e.g., Capital Projects Fund). (This entry can also be made using account 241 instead of account 240.) [33] 320 Due from Other Funds Warrants Outstanding 19 To record payment of expenditures (wages, travel, etc.) of the ASB Fund by the General Fund and the establishment of an interfund receivable. [34] 240 Cash on Deposit with County Treasurer Due from Other Funds Interfund Loan Receivable Revenues 2 To record the repayment of a $150 loan made to the Capital Projects Fund and the partial reimbursement of a receivable for payments made for the ASB Fund by the General Fund. Interfund loan interest of $2 is collected only on the interfund loan. [35] 240 Cash on Deposit with County Treasurer Interfund Loans Payable 500 To record a $500 loan received from the Capital Projects Fund NEW VII GF 10

15 Number Title and Description Debits Credits [36] 530 Expenditures Due to Other Funds 50 To record a $50 reimbursement of expenditures which were paid by the ASB Fund. [37] 535 Other Financing Uses Cash on Deposit with County Treasurer 50 To record a $50 operating transfer-out to the Transportation Vehicle Fund. (This entry can also be made using account 241 instead of account 240.) [38] 530 Expenditures Interfund Loans Payable Cash on Deposit with County Treasurer 515 To record the repayment of the $500 loan from the Capital Projects Fund. Interfund loan interest of $15 was paid. [39] 640 Due to Other Funds Cash on Deposit with County Treasurer 50 To record the repayment of $50 payable that was for expenditures paid by the ASB Fund (See entry #37.) NEW VII GF 11

16 Number Title and Description Debits Credits PREPAID ITEMS [40] 430 Prepaid Items s Payable 60 To record purchase of two-year insurance policy. [41] 601 s Payable Warrants Outstanding 60 To record payment of payable established with two-year insurance policy. [42] 530 Expenditures Prepaid Items 50 To record current year expenditures for first year of insurance set up in preceding entry ($30) and business machine contract ($20) set up in opening entry. INVESTMENTS [43] 450 Investments 1, Cash on Deposit with Co. Treasurer 1,000 To record the purchase of investments NEW VII GF 12

17 Number Title and Description Debits Credits [44] 240 Cash on Deposit with Co. Treasurer Investments Revenues 15 To record sale of investments and the related revenue. CONTRACTS PAYABLE - LONG-TERM [45] 520 Encumbrances Reserved for Encumbrances 155 To record a two-year conditional sales contract. A television system has been purchased in the current period. [46] 530 Expenditures Other Financing Sources 150 To record the delivery of the television system. The contract has a payment of $50 due in two months. (See entry #47.) ** Collateral entry (long-term portion of $100) is recorded in General Long Term Debt Group (GLTDAG), see entry #14. [47] 530 Expenditures Warrants Outstanding 50 To record the current portion of the contract for the purchase of the television system. (See entry #46.) NEW VII GF 13

18 Number Title and Description Debits Credits [48] 820 Reserved for Encumbrances Encumbrances 150 To record decrease in encumbrances concurrent with expenditures for delivery of the television system. ** Collateral entry is recorded in General Fixed Asset Group (GFAAG), see entry #4. [49] 530 Expenditures Contracts Payable - Current 5 To record the first year interest charge on the installment purchase contract. Interest accrues as time passes and therefore, becomes a payable when the first payment becomes due. [50] 820 Reserved for Encumbrances Encumbrances 5 To record the decrease in encumbrances concurrent with establishing a payable for interest on the contract. [51] 602 Contracts Payable - Current Warrants Outstanding 55 To record the first payment on the conditional sales contract. The principal amount is $50 with interest of $5. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # NEW VII GF 14

19 Number Title and Description Debits Credits INVENTORY - SUPPLIES AND MATERIALS - PERPETUAL METHOD [52] 410 Inventory - Supplies and Materials s Payable 220 To record the receipt of inventory items. [53] 601 s Payable Warrants Outstanding 220 To record the payment of payable established upon receipt of inventory items. [54] 530 Expenditures Inventory - Supplies and Materials 195 To record the reduction in inventory for supplies and materials withdrawn from stock or an inventory reduction when a physical inventory reveals that the book figure exceeds the actual stock. INVENTORY - SUPPLIES AND MATERIALS - PERIODIC METHOD [55] 530 Expenditures Inventory - Supplies and Materials 250 To record expenditures of inventory items at the beginning of year. It is assumed that inventory items are used before any new purchases NEW VII GF 15

20 Number Title and Description Debits Credits [56] 530 Expenditures s Payable 200 To record the receipt of inventory items and their immediate expenditure. [57] 410 Inventory - Supplies and Materials Expenditures 50 To record the establishment of inventory accounts based on a periodic physical count of items. Inventory should be costed by using the First In - First Out method (FIFO). INVENTORY - FOOD SERVICES - PERPETUAL METHOD [58] 420 Inventory - Lunchrooms s Payable 150 To record the receipt of purchased inventory items. [59] 425 Inventory - USDA Commodities Expenditures s Payable Revenues 300 To record the receipt of USDA Commodities, valued at USDA price lists, and to record the expenditure and payable of $5 for freight NEW VII GF 16

21 Number Title and Description Debits Credits [60] 530 Expenditures Inventory - Lunchrooms Inventory - USDA Commodities 25 To record the reduction in inventories for items withdrawn from stock. [61] 530 Expenditures Inventory - Lunchrooms Inventory - USDA Commodities 75 To record the reduction of inventories when physical inventories reveal that the book figures exceed the actual stock. INVENTORY - FOOD SERVICES - PERIODIC METHOD [62] 420 Inventory - Lunchrooms s Payable 150 To record the receipt of purchased inventory items. [63] 530 Expenditures Inventory - Lunchrooms Inventory - USDA Commodities 175 To record expenditures of items in inventories at the beginning of year. It is assumed that inventory items are used before new purchases NEW VII GF 17

22 Number Title and Description Debits Credits [64] 530 Expenditures s Payable 100 To record the receipt and immediate expenditure of inventory items. [65] 530 Expenditures s Payable Revenues 300 To record the receipt and immediate expenditure of USDA Commodities, valued at USDA price lists, and to record a payable for freight. [66] 420 Inventory - Lunchrooms Inventory - USDA Commodities Expenditures 400 To record the establishment of inventory accounts based on the periodic count of items. Inventory should be valued by using the First In-First Out method. Use the USDA price list for account 425. ACCOUNTS PAYABLE [67] 530 Expenditures s Payable 200 To record expenditures from the voucher listing control NEW VII GF 18

23 Number Title and Description Debits Credits [68] 601 s Payable Warrants Outstanding 199 To record the payment of vouchers from the warrant register control. [69] 241 Warrants Outstanding 42, Cash on Deposit with County Treasurer 42,700 To record the redemption of warrants as shown by the County Treasurer. [70] 601 s Payable Expenditures 1 To record the credit memo received on previous purchase. FIXED ASSETS - TRADE-IN [70a] 530 Expenditures 10, Cash 10,000 To record the purchase of a new truck costing $15,000 net of a trade-in allowance of $5,000. ** Collateral entry from entry #8b in the General Fixed Asset Group of s VII GF 19

24 Number Title and Description Debits Credits DEFERRED COMPENSATION [71] 455 Investments-Deferred Compensation Deferred Compensation Payable 60 To record the investment and related liability for deferred compensation. Cash for investments is obtained by warrant written along with the payroll. Amounts are expended with payroll. [72] 635 Deferred Compensation Payable Investments - Deferred Compensation 5 To record the investment fees or losses on investments. [73] 230 Cash on Hand Investments - Deferred Compensation 30 To record the partial liquidation of investments for the purpose of making payments to employees. This entry assumes that investments are not handled by the county. If the county liquidates investments, G.L. 230 is replaced by G.L [74] 635 Deferred Compensation Payable Warrants Outstanding Payroll Deductions and Taxes Payable 2 To record the payment to an employee or a former employee and the accrual of the federal tax deduction VII GF 20

25 Number Title and Description Debits Credits SELF-INSURED INDUSTRIAL INSURANCE [75] 459 Self-Insurance Security Deposits 1, Cash on Deposit with County Treasurer 1,500 To record the security deposit required by the Department of Labor and Industries for a deposit held in trust by the County Treasurer. (G.L. account 241 may be appropriate if the deposit is held in trust by other than the County Treasurer.) [76] 530 Expenditures Estimated Industrial Insurance Benefits Payable 30 To record the expenditure for industrial insurance benefits and the liability claims. This is a payroll entry. [77] 639 Estimated Industrial Insurance Benefits Payable Warrants Outstanding 10 To record the payment of benefit claims, administrative assessments, and reinsurance premiums for industrial insurance. [78] 530 Expenditures s Payable 5 To record the supplemental pension, consulting firm service fees, surety bond premiums, legal and other related expenditures involved with industrial insurance benefits VII GF 21

26 Number Title and Description Debits Credits UNEMPLOYMENT COMPENSATION BENEFITS REIMBURSEMENT DISTRICT NOT IN POOL [79] 530 Expenditures Estimated Unemployment Benefits Payable 40 To record the expenditure of unemployment benefits during payroll processing. The liability is for estimated future claims against current wages. [80] 637 Estimated Unemployment Benefits Payable Warrants Outstanding 10 To record the payment of unemployment benefits and administrative assessments to the Employment Security Department. These amounts represent claims actually paid by Employment Security which are now being reimbursed by the district. ADJUSTMENTS - PRIOR PERIOD OR YEAR - IMMATERIAL ERRORS Entries for immaterial errors are handled the same as correcting entries in the current year. See EXPENDITURES section of Journal Entries. Refer to definition of materiality in Chapter VIII - Financial Reporting. ADJUSTMENTS - PRIOR PERIOD OR YEAR - MATERIAL ERRORS Prior period or year adjustments are infrequent and must be of a material amount. Entries #81, 82, 83, and 84 are samples of some adjustments that might be necessary in certain unusual situations. Refer to definition of materiality in Chapter VIII - Financial Reporting VII GF 22

27 Number Title and Description Debits Credits [81] 230 Cash on Hand 50, Unreserved, Undesignated for Prior Year Corrections 50,000 To record the refund of expenditures paid in a prior period/year. [82] 898 Unreserved, Undesignated for Prior Year Corrections 40, Cash on Deposit with County Treasurer 40,000 To record the refund of prior year tax receipts. [83] 420 Inventory - Lunchrooms 15, Unreserved, Undesignated for Prior Year Corrections 15,600 To record the correction of an error in recording the prior year physical inventory. [84] 898 Unreserved, Undesignated for Prior Year Corrections 15, s Payable 15,000 To record the correction of prior year accruals that were missed in error VII GF 23

28 Number Title and Description Debits Credits ADJUSTMENTS - PRIOR PERIOD OR YEAR - FUND ENTITY CHANGES Fund Entity changes occur when an equity transfer is made to another governmental unit outside of the school district. [84a] 898 Unreserved, Undesignated for Prior Year Corrections 400, Due to Other Governmental Units 400,000 To record transfer of resources to XYZ ECEAP Center. This journal entry is used to reduce beginning fund balance. At the end of the year, GL 898 is closed to 890, Unreserved Fund Balance. ACCRUAL FOR PAYROLL 530 Expenditures Accrued Salaries Payroll Deductions & Taxes Payable 40 [85] To record payroll accruals as of the end of fiscal year 8/31/19XX. Since all expenditures are processed through the payables, this represents only amounts that do not already appear in the balance of the payables at the end of the period. CLOSING ENTRIES 900 Appropriations 47, Appropriations for Other Financing Uses Estimated Revenues 47, Estimated Other Financing Sources Appropriated Fund Balance 220 [86] To record the closing of the budgetary accounts. Since these accounts must always be in balance during the year, the closing entries simply eliminate the existing balances VII GF 24

29 Number Title and Description Debits Credits [87] 890 Unreserved, Undesignated Fund Balance 46, Expenditures 46, Other Financing Uses 50 To record the closing of Expenditures and Other Financing Uses at the end of the fiscal year. [88] 960 Revenues 59, Other Financing Sources Unreserved, Undesignated Fund Balance 59,439 To record the closing of Revenues and Other Financing Sources at the end of the fiscal year. [89] 820 Reserved for Encumbrances 1, Encumbrances 1,300 To record the closing of encumbrances to reserved for encumbrances at the end of the fiscal year. [90] 898 Unreserved, Undesignated for Prior Year Corrections 410, Unreserved, Undesignated Fund Balance 410,600 To record the closing of the prior year corrections at the end of the fiscal year VII GF 25

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31 CHAPTER VII SECTION VII-CPF CAPITAL PROJECTS FUND JOURNAL ENTRIES General Number Title and Description Debits Credits OPENING ENTRY 240 Cash on Deposit with County Treasurer Taxes Receivable s Receivable Investments 25, Warrants Outstanding s Payable Deferred Revenue Deferred Revenue - Taxes Receivable Unreserved, Undesignated Fund Balance 25,350 [1] To record the Capital Projects Fund opening entry as of September 1, 19XX. This represents the beginning trial balance. BUDGET ENTRY 510 Estimated Revenues 18, Estimated Other Financing Sources 19, Appropriated Fund Balance 2, Appropriations 35,000 [2] To record the annual budget of the Capital Projects Fund as adopted by the board of directors for fiscal year 19XX-XX NEW VII CPF 1

32 Number Title and Description Debits Credits REVENUES - PROPERTY TAX 310 Taxes Receivable 3, Deferred Revenue - Taxes Receivable 3,000 [3] To record the property taxes levied for the Capital Projects Fund for the tax year 19XX. 240 Cash on deposit with County Treasurer 1, Revenues 1,550 [4] To record the collection of property taxes as reported by the County Treasurer. 760 Deferred Revenue - Taxes Receivable 1, Taxes Receivable 1,550 [5] To record the reduction in Taxes Receivable as a result of property tax collections as reported by the County Treasurer. 960 Revenues Cash on deposit with County Treasurer 10 [6] To record the refund of collected property taxes NEW VII CPF 2

33 Number Title and Description Debits Credits INVESTMENTS 450 Investments 5, Cash on Deposit with County Treasurer 5,000 [7] To record the purchase of investments. 240 Cash on Deposit with County Treasurer 20, Investments 20, Revenue 200 [8] To record the sale of investments and the related revenue earned. REVENUES 230 Cash on Hand Revenues 100 [9] To record the receipt for revenues collected by the district to be remitted to the county treasurer. [10] 240 Cash on deposit with County Treasurer Cash on Hand 100 To record the deposit of cash with the county treasurer NEW VII CPF 3

34 Number Title and Description Debits Credits REVENUES - OTHER FINANCING SOURCES [11] 240 Cash on Deposit with County Treasurer 19, Other Financing Sources 19,000 To record the sale of bonds. This entry can be used as a format for the following entries: sale of real property, sale of equipment, and the compensated loss of fixed assets. ** Collateral entry is recorded in General Long-Term Debt Group (GLTDAG), see entry #10. [11b] 240 Cash on Deposit with County Treasurer 2,000, Other Financing Sources 2,000,000 To record the sale of zero-coupon bonds. Bonds have face value of $2,500,000 and are due in 15 years. See Collateral Entry #22 in GLTDAG. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS [12] 240 Cash on Deposit with County Treasurer Interfund Loan Payable 100 To record the issuance of an interfund loan payable VII CPF 4

35 Number Title and Description Debits Credits 530 Expenditures Interfund Loan Payable Cash on Deposit with County Treasurer 106 [13] To record the repayment of an interfund loan payable. Interfund interest of $6 was also paid. [14] 320 Due from Other Funds Cash on Deposit with County Treasurer 100 To record the existence of an interfund receivable from the General Fund. [15] 240 Cash on Deposit with County Treasurer Due from Other Funds Revenues 6 To record the repayment of interfund receivable from the General Fund including interest earned of $6. [16] 535 Other Financing Uses Cash on Deposit with County Treasurer 100 To record the transfer of resources to the Debt Service Fund so that it can make payment on nonvoted bonds that were used to purchase portables VII CPF 5

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37 Number Title and Description Debits Credits EXPENDITURES [17] 520 Encumbrances 4, Reserved for Encumbrances 4,000 To record the commitment for purchases. [18] 530 Expenditures 4, s Payable 4,000 To record expenditures. 820 Reserved for Encumbrances 4, Encumbrances 4,000 [19] To record encumbrance liquidation. 601 s Payable 4, Warrants Outstanding 4,000 [20] To record warrants issued including a separate warrant for 5 percent retainage to an escrow bank account. 241 Warrants Outstanding 4, Cash on Deposit with County Treasurer 4,000 To record warrant redemption. [21] VII CPF 6

38 Number Title and Description Debits Credits CONTRACTS PAYABLE - LONG-TERM [22] 530 Expenditures 2, Contracts Payable - Current Other Financing Sources 2,000 To record expenditures; $500 to be paid in current year and $2000 to be paid in future years. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry #11. [23] 602 Contracts Payable - Current Warrants Outstanding 500 To record the warrant issued for the current year portion of the long-term contract. [24] 241 Warrants Outstanding Cash on deposit with County Treasurer 500 To record warrant redemption NEW VII CPF 7

39 Number Title and Description Debits Credits REVENUES - STATE MATCHING [25] 520 Encumbrances 5, Reserved for Encumbrances 5,000 To record the commitment for purchases. [26] 530 Expenditures 5, Revenues 5,000 To record the receipt of state matching moneys paid directly to the contractor. [27] 820 Reserved for Encumbrances 5, Encumbrances 5,000 To record encumbrance liquidation NEW VII CPF 8

40 Number Title and Description Debits Credits CLOSING ENTRIES [28] 540 Appropriated Fund Balance 2, Appropriations 35, Estimated Revenues 18, Estimated Other Financing Sources 19,000 To record the closing of budgetary accounts. [29] 960 Revenues 6, Other Financing Sources 21, Expenditures 11, Unreserved, Undesignated Fund Balance 16,340 To record the closing of revenues, expenditures, and other financing sources to unreserved fund balance NEW VII CPF 9

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42 CHAPTER VII SECTION VII-DSF DEBT SERVICE FUND JOURNAL ENTRIES General Number Title and Description Debits Credits OPENING ENTRY 240 Cash on Deposit with County Treasurer Cash with Fiscal Agent Taxes Receivable s Receivable Investments Matured Bonds Payable Matured Bond Interest Payable Deferred Revenue - Taxes Receivable Unreserved, Undesignated Fund Balance 392 [1] To record the Debt Service Fund opening entry as of September 1, 19XX. This represents the beginning trial balance. BUDGET ENTRY 510 Estimated Revenues Estimated Other Financing Sources Appropriated Fund Balance Appropriations Appropriations for Other Financing Uses 100 [2] To record the annual budget of the Debt Service Fund as adopted by the board of directors reflecting the amount of bonds to be redeemed, interest to be paid and other uses in the Refunded Bond Fund NEW VII DSF 1

43 Number Title and Description Debits Credits REVENUES - PROPERTY TAX 310 Taxes Receivable Deferred Revenue - Taxes Receivable 784 [3] To record the property taxes levied for the Debt Service Fund for the tax year 19XX. 240 Cash on Deposit with County Treasurer Revenues 688 [4] To record the collection of property taxes as reported by the County Treasurer. 760 Deferred Revenue - Taxes Receivable Taxes Receivable 688 [5] To record the reduction in Taxes Receivable as a result of property tax collections. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # Revenues Cash on Deposit with County Treasurer 1 [6] To record the refund of collected property taxes. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # NEW VII DSF 2

44 Number Title and Description Debits Credits REVENUES - OTHER FINANCING SOURCES 240 Cash on Deposit with County Treasurer Revenues 188 [7] To record the state forest revenue. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # s Receivable Other Financing Sources 10 [8] To record the proceeds from the sale of real property that are receivables. The property was originally financed by the sale of bonds which have not been totally retired. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # Cash on Deposit with County Treasurer s Receivable 10 [9] To record the collection of accounts receivable NEW VII DSF 3

45 Number Title and Description Debits Credits EXPENDITURES 530 Expenditures Matured Bonds Payable Matured Bond Interest Payable 72 [10] To record the expenditures for bond principal and interest. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # Expenditures Bond Service Transfer Fees Payable 1 [11] To record the bond transfer expenditures. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry #7. EXPENDITURES - BOND REDEMPTION [12] 250 Cash with Fiscal Agent Cash on Deposit with County Treasurer 842 To record the cash remitted to the fiscal agent for scheduled bond redemption and coupon interest payments by the fiscal agent NEW VII DSF 4

46 Number Title and Description Debits Credits 675 Matured Bonds Payable Matured Bond Interest Payable Cash with Fiscal Agent 839 [13] To record the redemption of matured bond principal and matured bond interest paid by a fiscal agent other than the County Treasurer. (G.L. account 240 would be used instead of 250 if the principal and interest are paid by the County Treasurer.) INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS 240 Cash on Deposit with County Treasurer Interfund Loans Payable 10 [14] To record a loan received from another fund. 530 Expenditures Interfund Loans Payable Cash on Deposit with County Treasurer 11 [15] To record the repayment of a loan received from another fund. The $1 represents interest. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # NEW VII DSF 5

47 Number Title and Description Debits Credits [16] 240 Cash on Deposit with County Treasurer Other Financing Sources 100 To record an operating transfer from the Transportation Vehicle Fund. The subsidiary used in G.L. account 965 is account 9900-Operating Transfers. [17] 899 Unreserved, Undesignated for Residual Equity Transfers Cash on Deposit with County Treasurer 100 To record the transfer of equity to the General Fund. INVESTMENTS 450 Investments 2, Cash on deposit with County Treasurer 2,340 [18] To record the purchase of investments. [19] 240 Cash on Deposit with County Treasurer 2, Investments 2, Revenues 34 To record the sale of investments and the earned interest. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry # NEW VII DSF 6

48 Number Title and Description Debits Credits ACCRUED INTEREST [20] 240 Cash on deposit with County Treasurer Accrued Interest Payable 20 To record the cash received for accrued interest from date of bond issuance until the cash was received. JOURNAL ENTRIES FOR THE REGULAR METHOD OF ADVANCE BOND DEBT REFUNDING [21] 535 Other Financing Use - Payment to Refunded Bond Escrow Agent 510, Other Financing Source - Sale of Refunding Bonds 510,000 This entry records the proceeds from the sale of the refunding bonds and the payment to the refunded bond escrow agent to defease the old debt. This entry also includes $10,000 in both the Other Financing Use and Other Financing Source accounts for underwriting fees. If the school district receives the cash from the sale of the refunding bonds, this entry would be split into two entries which would include a debit to cash for the receipt of the proceeds and a credit to cash to record the payments to the escrow agent and to the underwriter. ** Collateral entries are recorded in the General Long-Term Debt Group (GLTDAG) as entries #17 and # VII DSF 7

49 Number Title and Description Debits Credits [22] 530 Expenditures 10, s Payable 10,000 To record debt issuance expenditures from the Debt Service Fund s current resources for underwriter s fees. If underwriter s fees are deducted from the proceeds of the refunding bonds, Journal Entry #21 is to be used. JOURNAL ENTRIES FOR THE CROSSOVER METHOD OF ADVANCE BOND DEBT REFUNDING [23] 250 Cash with Fiscal Agent 500, Other Financing Source - Sale of Refunding Bonds 500,000 To record the amount placed in escrow as the result of a crossover refunding bond issue. ** Collateral entry is recorded in the General Long-Term Debt Group (GLTDAG) as entry #21. [24] 535 Other Financing Use - Crossover Defeasance 500, Cash with Fiscal Agent 500,000 To record the amount placed in escrow as the result of a crossover refunding bond issue. ** Collateral entry is recorded in the General Long-Term Debt Group (GLTDAG) as entry # VII DSF 8

50 Number Title and Description Debits Credits CLOSING ENTRIES 900 Appropriations Appropriation for Other Financing Estimated Revenues Estimated Other Financing Sources Appropriated Fund Balance 60 [25] To record the closing of budgetary accounts. [22] 890 Unreserved, Undesignated Fund Balance Expenditures 824 To record the closing of expenditures at the end of the fiscal year. General Number Title and Description Debits Credits [23] 960 Revenues Other Financing Sources Unreserved, Undesignated Fund Balance 919 To record the closing of revenues at the end of the fiscal year NEW VII DSF 9

51 Number Title and Description Debits Credits [24] 890 Unreserved, Undesignated Fund Balance Unreserved, Undesignated for Residual Equity Transfers 100 To record the closing of residual equity transfers at the end of the fiscal year NEW VII DSF 10

52 CHAPTER VII SECTION VII-ASB ASSOCIATED STUDENT BODY FUND JOURNAL ENTRIES General Number Title and Description Debit Credit OPENING ENTRY 240 Cash on deposit with County Treasurer Inventories - Supplies and Materials Prepaid Items Investments s Payable Unreserved, Undesignated Fund Balance 104 [1] To record the ASB Fund opening entry as of September 1, 19XX. This represents the beginning trial balance. BUDGET ENTRY 510 Estimated Revenues Appropriated Fund Balance Appropriations for Expenditures 300 [2] To record the annual budget of the ASB Fund as adopted by the board of directors for the fiscal year 19XX NEW VII ASB 1

53 Number Title and Description Debit Credit CASH - IMPREST 200 Imprest Cash Warrants Outstanding 10 [3] To record the establishment of an imprest account or to increase an existing imprest account. If a treasurer's check is used, credit account 240-Cash on Deposit with County Treasurer. 530 Expenditures Warrants Outstanding Unreserved, Undesignated Fund Balance Expenditure Contra (530) 8 To record the replenishment of an imprest account by warrant. [4] 240 Cash on deposit with County Treasurer Imprest Cash 10 [5] To record the return of an imprest account when the account is reduced, abolished or returned to the district at year end. INVENTORY - SUPPLIES AND MATERIALS - PERODIC METHOD 530 Expenditures Inventories - Supplies and Materials Unreserved, Undesignated Fund Balance Expenditure Contra (530) 2 [6] To record an inventory adjustment at the time of a periodic inventory NEW VII ASB 2

54 Number Title and Description Debit Credit INVESTMENTS 450 Investments Cash on deposit with County Treasurer 100 [7] To record the purchase of investments. 240 Cash on deposit with County Treasurer Investments Revenues Revenues Contra (960) Unreserved, Undesignated Fund Balance 10 [8] To record the sale of investments and the related investment revenue. EXPENDITURES 530 Expenditures Warrants Outstanding Unreserved, Undesignated Fund Balance Expenditure Contra (530) 129 To record expenditures. [9] NEW VII ASB 3

55 Number Title and Description Debit Credit [10] 241 Warrants Outstanding Cash on deposit with County Treasurer 168 To record the redemption of warrants as shown by County Treasurer's report. ACCOUNTS PAYABLE [11] 601 s Payable Warrants Outstanding 2 To record the payment of vouchers previously approved. [12] 530 Expenditures s Payable Unreserved, Undesignated Fund Balance Expenditure Contra 2 To record an accrual at the end of the fiscal year. CONTRACTS PAYABLE [13] 530 Expenditures Contracts Payable - Current Unreserved, Undesignated Fund Balance Expenditure Contra 5 To record an expenditure through a contract payable NEW VII ASB 4

56 Number Title and Description Debit Credit ENCUMBRANCES [14] 520 Encumbrances Reserved for Encumbrances 3 To record the issuance of purchase orders. [15] 820 Reserved for Encumbrances Encumbrances 3 To record the liquidation of encumbrances by the payment of vouchers or the cancellation of unneeded encumbered purchase orders. REVENUES [16] 240 Cash on deposit with County Treasurer Revenues Revenue Contra (960) Unreserved, Undesignated Fund Balance 13 To record revenues deposited with the County Treasurer. [17] 230 Cash on Hand Revenues Revenue Contra (960) Unreserved, Undesignated Fund Balance 9 To record the receipt of revenues collected by the district for remittance to County Treasurer via the depository account NEW VII ASB 5

57 Number Title and Description Debit Credit [18] 240 Cash on Deposit w/county Treasurer Cash on Hand 9 To record the deposit of cash with the County Treasurer. INTERFUND RECEIVABLE/PAYABLES AND TRANSFERS [19] 530 Expenditures Due to Other Funds Unreserved, Undesignated Fund Balance Expenditure Contra (530) 19 To record a liability to the General Fund for ASB expenditures incurred by the General Fund. ** See journal entry # 33 in General Fund. [20] 640 Due to Other Funds Warrants Outstanding 19 To record the payment to the General Fund for the amount due. ** See journal entry # 33 in General Fund NEW VII ASB 6

58 Number Title and Description Debit Credit FIXED ASSETS - PURCHASE [21] 530 Expenditures Warrants Outstanding Unreserved, Undesignated Fund Balance Expenditure Contra (530) 10 To record a purchase of equipment which is a fixed asset. ** Collateral entry is recorded in General Fixed Assets Group (GFAAG), see entry #7. ** The donation of equipment items to the ASB Fund does not require an entry in the ASB Fund. The equipment is recorded in the General Fixed Asset Group (GFAAG), see entry #7. CLOSING ENTRIES [22] 540 Appropriated Fund Balance Appropriations for Expenditures Estimated Revenues 338 To record the closing of the budgetary accounts. Since these accounts must always be in balance during the year, the closing entries simply eliminate the existing balances NEW VII ASB 7

59 Number Title and Description Debit Credit [23] 930 Expenditure Contra (530) Expenditures 280 To record the closing of expenditures at the end of the fiscal year. [24] 960 Revenues Revenue Contra (960) 328 To record the closing of revenues at the end of the fiscal year. [25] 820 Reserved for Encumbrances Encumbrances 8 To close encumbrances to Reserved for Encumbrances at the close of the fiscal year. NOTE: If encumbrances are carried forward to the next fiscal year, re-establish the prior year encumbrances closed to the Reserved for Encumbrances by reversing that entry into the new fiscal year NEW VII ASB 8

60 CHAPTER VII SECTION VII-TVF TRANSPORTATION VEHICLE FUND JOURNAL ENTRIES General Number Title and Description Debits Credits OPENING ENTRY [1] 240 Cash on deposit with County Treasurer Taxes Receivable Investments 1, Warrants Outstanding s Payable Interfund Loan Payable Deferred Revenue - Taxes Receivable Unreserved, Undesignated Fund Balance 825 To record the Transportation Vehicle Fund opening entry as of September 1, 19XX. This represents the beginning trial balance. BUDGET ENTRY [2] 510 Estimated Revenues 1, Estimated Other Financing Sources 3, Appropriated Fund Balance 1, Appropriations 3,461 To record the annual budget of the Transportation Vehicle Fund as adopted by the board of directors for fiscal year 19XX-XX NEW VII TVF 1

61 Number Title and Description Debits Credits REVENUES - PROPERTY TAX [3] 310 Taxes Receivable 1, Deferred Revenue - Taxes Receivable 1,500 To record the property taxes levied for the Transportation Vehicle Fund for the tax year 19XX. [4] 240 Cash on deposit with County Treasurer Revenues 750 To record the collection of property taxes as reported by the County Treasurer. [5] 760 Deferred Revenue - Taxes Receivable Taxes Receivable 750 To record the reduction of Taxes Receivable as a result of property tax collections. [6] 960 Revenues Cash on deposit with County Treasurer 10 To record the refund of collected property taxes NEW VII TVF 2

62 Number Title and Description Debits Credits INVESTMENTS [7] 450 Investments Cash on deposit with County Treasurer 500 To record investment purchases. [8] 240 Cash on deposit with County Treasurer Investments Revenues 50 To record the sale of investments and the earned interest. REVENUES [9] 230 Cash on Hand Revenues 100 To record the receipt of revenues collected by the district for remittance to the County Treasurer. [10] 240 Cash on deposit with County Treasurer Cash on Hand 100 To record the deposit of cash with the County Treasurer NEW VII TVF 3

63 Number Title and Description Debits Credits REVENUES - OTHER FINANCING SOURCES [11] 240 Cash on deposit with County Treasurer 3, Other Financing Sources 3,000 To record the sale of bonds. This entry can be used as a format for the following entries: sale of equipment, compensated loss of fixed assets, long-term financing, and operating transfers. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS [12] 240 Cash on deposit with County Treasurer Interfund Loan Payable 100 To record the issuance of an interfund loan payable. [13] 530 Expenditures Interfund Loan Payable Cash on deposit with County Treasurer 106 To record the repayment of an interfund loan payable including interest of $6. (This entry can also be made using account 241 instead of 240.) [14] 535 Other Financing Uses Cash on deposit with County Treasurer 100 To record the transfer of resources to the Debt Service Fund so that it can make the payment for non-voted bonds that were used to purchase buses NEW VII TVF 4

64 Number Title and Description Debits Credits EXPENDITURES [15] 520 Encumbrances 1, Reserved for Encumbrances 1,500 To record commitment for purchases. [16] 530 Expenditures 1, s Payable 1,500 To record expenditures. [17] 820 Reserved for Encumbrances 1, Encumbrances 1,500 To record encumbrance liquidation. [18] 601 s Payable 1, Warrants Outstanding 1,500 To record warrants issued. [19] 241 Warrants Outstanding 1, Cash on deposit with County Treasurer 1,500 To record warrant redemption NEW VII TVF 5

65 Number Title and Description Debits Credits CONTRACTS PAYABLE - LONG-TERM [20] 530 Expenditures 2, Contracts Payable - Current Other Financing Sources 2,000 To record expenditures; $500 to be paid in the current fiscal year and the $2000 to be paid in future years. ** Collateral entry is recorded in General Long Term Debt Group (GLTDAG), see entry #12. [21] 602 Contracts Payable - Current Warrants Outstanding 500 To record the $500 warrant issued for the first payment of the contract payable. See Journal Entry #20. [22] 241 Warrants Outstanding Cash on deposit with County Treasurer 500 To record warrant redemption NEW VII TVF 6