701.2 basic fund accounting

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THE BASICS OF FUND ACCOUNTINGTHE BASICS OF FUND ACCOUNTING

Presented by:

Darla Erickson

Local Government Services Bureau

State Accounting Division, Department of Administration1


Topics covered in this presentation:

• Overview of Governmental Accounting Basics• Overview of Governmental Accounting Basics

• Principles

• Fundamentals of Debits and Credits

• Fund Accounting/Basis of Accounting

• Using the BARS Chart of Accounts

• Funds• Funds

• Accounts

• Objects

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SOME OF THE ACRONYMS COMMON

TO GOVERNMENTAL ACCOUNTING

CAFR Comprehensive Annual Financial Report

GASB Governmental Accounting Standards Board

GAAFR Governmental Accounting, Auditing,

TO GOVERNMENTAL ACCOUNTING

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GAAFR Governmental Accounting, Auditing,

and Financial Reporting

GAAP Generally Accepted Accounting Principles


• PRINCIPLES OF GOVERNMENTAL ACCOUNTING• Accounting and Reporting Capabilities

• Accounting systems should be maintained in accordance with generally accepted accounting principles (GAAP) and uniform in MT by using the BARS Chart of Accounts as prescribed by the Local Government Services Bureau

• Chart of Accounts: http://doa.mt.gov/lgsb/Forms/AccountingSystemsProgram/1_AccountingManuals/01_BARSChartofAccount

• Updates: http://doa.mt.gov/lgsb/bars_memos

• Fund Accounting Systems• Accounting systems should be organized and operated on a fund basis

• Fund Types• Fund financial statements should report governmental, proprietary

and fiduciary fund types if applicable

• Number of Funds• Only maintain those funds required by law and sound financial management

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• PRINCIPLES OF GOVERNMENTAL ACCOUNTING

• Special Revenue Funds (*recent change)p ( g )• Special Revenue Funds must meet the new definition of a special revenue fund according to GASB54:

• Used to account for proceeds of specific revenue sources that are committed or restricted to expenditures for specific purposes other than debt service or capital projects.

– Balances will be

» Non‐spendable

» Restricted

» Committed

» Assigned (but not only assigned fund balance)

» Negative Unassigned Fund Balance

*Existing funds that do not meet this fund balance type will report their balance in the General Fund at year‐end for reporting purposes.

*Or Commit Revenues or Fund Balance to a major purpose by year‐end by taking the highest action of local government by year‐end.

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• PRINCIPLES OF GOVERNMENTAL ACCOUNTING

• Reporting Capital Assetsp g p• A clear distinction should be made between general capital assets and those of the proprietary and fiduciary funds.

• Capital Assets are different than an asset inventory listing– Threshold Policy should be determined by cost and useful life

• Valuation of Capital Assets• Assets should be reported at historic cost

– Donated assets at the estimated fair market value at the time of acquisition

• Depreciation of Capital Assets• Capital assets should be depreciated over their estimated useful lives

– Use your entity’s historical information to determine the useful life – the life will vary according to use of the asset

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• PRINCIPLES OF GOVERNMENTAL ACCOUNTING• Reporting Long‐term Liabilities• Reporting Long‐term Liabilities

• A clear distinction should be made between business‐type long‐term liabilities and general long‐term liabilities

• Measurement Focus/Basis of Accounting in the BFS• The basic financial statements should display the government‐wide financial statements (full accrual) and the fund financial statements (modified accrual)

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• PRINCIPLES OF GOVERNMENTAL ACCOUNTING• Budgeting, Budgetary Control/Reporting

• Budgets should be adopted, controlled through monitoring and comparison statements included in reporting.

• The budgetary statements should present original budget, final budget, actual amounts and a comparison with actual to final

– Date change: Approved budget due to County by the later of 30 days after receipt of the certified taxable valuation or first Thursday in Sept

– Due to LGSB 60 days after receipt of the certified taxable valuation or Oct 1– Local Budget Act: 7‐6‐40 MCA

• Transfer, Revenue, Expenditure/Expense Classifications• Revenues should be maintained by fund, major source and other financing sources

• Expenditures of governmental funds by fund, function/activity and other financing uses (transfers, etc)

• Expenses of proprietary funds by fund/activity/object 8

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• PRINCIPLES OF GOVERNMENTAL ACCOUNTING• Common Terminology and Classificationgy f

• A common terminology and classification should be used consistently throughout the accounting software, budget, and financial report of each fund

• Annual Financial Reports• Preparation of financial reports for the benefit of management should be prepared

• An Annual Financial Report should be prepared and made available• An Annual Financial Report should be prepared and made available to the public and the Local Government Services Bureau

• Due to LGSB by Dec 31

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• Financial Statements:

• Balance Sheet (Governmental Funds) or Statement of Net Assets (Enterprise Funds)Consists of:

• Assets – debit balance

• Liabilities – credit balanceLiabilities credit balance

• Fund Balance (Governmental Funds) or Net Assets(Enterprise Funds)

Fund Balance/Net Assets = Assets – Liabilities

Or Assets – Liabilities = Fund Bal/Net Assets 10

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Assets

• Have a Debit Balance

• If an asset has a credit balance – the account has a “negative” balance

hi i l• This is not normal

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To increaseincrease an asset account you debit the account

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To decreasedecrease an asset account you credit the account

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Liabilities

• Have a Credit Balance

• If a liability has a debit balance –the account has a “negative” balancebalance

• This is not normal

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To increaseincrease a liability account you credit the account

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To decreasedecrease a liability account you debit the account

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Fund Balance/Net Assets has a credit balanceIf it has a debit balance that is “negative” and isn’t

When you post a debit to an asset or liability account fund balance/net assets will

If it has a debit balance that is negative and isn t normal.

Entries should rarely if ever debit or credit fund bal or net assets

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automatically increase

When you post a credit to an asset or liability account fund balance/net assets will automatically decrease

THE BASICS OF FUND ACCOUNTINGTHE BASICS OF FUND ACCOUNTING• Financial Statements:

Statement of Revenues, Expenditures and Changes in , p gFund Balances (Governmental Funds)

or Statement of Revenue, Expenses and Changes in Net Assets (Enterprise Funds)

Consists of:

• Revenues – credit balance

• Expenditures/Expenses – debit balance

• Other Financing Sources (Uses) or Non‐Operating Revenue/Expense

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Revenues

• Have a Credit Balance

• If a revenue has a debit balance –the account has a “negative” balancebalance


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To increaseincrease a revenue account you credit the account

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To decreasedecrease a revenue account you debit the account

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Expenditures/Expenses

• Have a Debit Balance

• If an expenditure/expense account has a credit balance – the account has a “negative” balancehas a “negative” balance


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To increaseincrease an expense/expenditure account you debit the account

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To decreasedecrease an expense/expenditure account you credit the account

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FUNDAMENTALS OF DEBITS & CREDITSFUNDAMENTALS OF DEBITS & CREDITS

BASIC ACCOUNTING FORMULABASIC ACCOUNTING FORMULA

DR = CR

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Example: You receive $10 for a dog license$10 = $10

Cash (Asset) = Revenue (Pet Lic)101000 = 323030


BASIC ACCOUNTING FORMULA

EXPENSES/

EXPENDITURES + REVENUES +

ASSETS = LIABILITIES + EQUITY

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DR = CR

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ACCOUNTING FORMULA

EXPENSES/

ASSETS + EXPENDITURES = REVENUES + LIABILITIES + EQUITY

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ASSETS = LIABILITIES + EQUITY

DR = CR


SELF-BALANCING SET OF ACCOUNTS

ACCOUNTING FORMULA

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ASSETS + EXPENSE = REVENUES + LIABILITIES + EQUITY

DR = CR

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• RECAPDebits must equal credits

An entry made within a fund should have equal debits and credits

All debits and credits should be made to asset, liability, revenue, expenditure/expense, other financing sources/uses or restatement accounts

Rarely, if ever, should fund balance/net assets accounts be debited or credited

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Test our knowledge

1. Assets have a normal __________ balance:1 C dit1. Credit2. Debit

2. Liabilities have a normal ______ balance:1. Debit 2. Credit

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2. Credit

3. Debits should equal:1. Revenues2. Credits

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TYPES OF FUNDSTYPES OF FUNDS

GOVERNMENTAL FUNDS

• 11000 ~ General

• 22000 ~ Special Revenue

• 33000 ~ Debt Service

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• 33000 ~ Debt Service

• 44000 ~ Capital Projects

• 88000 ~ Permanent


PROPRIETARY FUNDS

• 55000 ~ Enterprise

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• 66000 ~ Internal Service

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FIDUCIARY FUNDS

• 77000 ~ Pension Trust~ Investment Trust

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Investment Trust ~ Private Purpose Trusts~ Agency


99000 ACCOUNT GROUPS - For Governmental Funds!

• General Capital Assets ~ 9000

• General Long-Term Debt ~ 9500

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• No longer required to be reported

• Can keep updated for your records

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BASIS OF ACCOUNTING

Full Accrual Basis

Deals with the timing and recognition of transactions and events

When recognized:

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Modified Accrual Basis

Cash Basis

BACK TO THE BASICSTHE BASICS OF FUND ACCOUNTINGTHE BASICS OF FUND ACCOUNTING

Full Accrual Basis of Accounting

• Recognizes increases and decreases in economicRecognizes increases and decreases in economic resources (Net Assets) as soon as the underlying event or transaction occurs

•Revenues are recognized as soon as they are earned

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•Expenses are recognized as soon as the liability is incurred

• Regardless of the time of related cash inflow and outflows

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BACK TO THE BASICSTHE BASICS OF FUND ACCOUNTINGTHE BASICS OF FUND ACCOUNTING

Modified Accrual Basis of Accounting

•Recognizes increases and decreases in financial gspendable resources only to the extent that they reflect near-term inflows and outflows of cash

• Amounts are recognized as revenues when earned, only so long as they are collectible within the

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only so long as they are collectible within the period or soon enough thereafter to be used to pay liabilities of the current period. (60 days)

• In other words, when they are available to pay expenditures of the current period.

BACK TO THE BASICSBACK TO THE BASICS

The Cash Basis of Accounting

I th i l t t hi d id th l t• Is the simplest to achieve and provides the least disclosure

• Only revenues received and expenses or expenditures disbursed are recognized

• The Balance Sheet of the Governmental Unit

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The Balance Sheet of the Governmental Unit displays only a balance in cash and the fund balance accounts.

• The Operating Statement presents results of only the cash transactions for the reporting fund.

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Test our knowledge

Governmental Funds are reported using which Basis of Accounting:

1. Full Accrual Basis2. Modified Basis3. Cash Basis

Enterprise Funds are reported using

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Enterprise Funds are reported using which Basis of Accounting:

1. Full Accrual Basis2. Modified Basis3. Cash Basis

BASIS & MEASUREMENT FOCUSBASIS & MEASUREMENT FOCUS

PRACTICAL DIFFERENCES:

• Receipt of long-term debt proceeds• Receipt of long-term debt proceeds

• Repayment of the principal of long-term debt

• Capital acquisition (outlay)

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• Depreciation of capital assets

• Deferrals and amortizations

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ILLUSTRATIVE ENTRIES

RECEIPT OF LONG TERM DEBT PROCEEDSRECEIPT OF LONG-TERM DEBT PROCEEDS:

PROPRIETARY FUNDS: DR CR

Cash $20,000

Bonds Payable $20,000

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GOVERNMENTAL FUNDS:

Cash $20,000

Other Financing Sources $20,000(Proceeds of General Long-Term Debt)



REPAYMENT OF THE PRINCIPAL OF LONG-TERM DEBT:


Bonds Payable $5,000

Interest Expense 300

Cash $5,300

GOVERNMENTAL FUNDS:

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GOVERNMENTAL FUNDS:

Expenditure- Bond Principal $5,000

Expenditure-bond Interest 300

Cash $5,300

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ILLUSTRATIVE ENTRIESCAPITAL ACQUISITION: DR CR

PROPRIETARY FUNDS:

Equipment $20,000

Cash $20,000*If expense/capital outlay was used – reverse as part of closing entries

GOVERNMENTAL FUNDS:

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Expenditure-capital Outlay $20,000

Cash $20,000




Depreciation Expense $2,000

Accumulated Depreciation $2,000

GOVERNMENTAL FUNDS:

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Depreciation may be Recorded in the General Capital Asset Account Group

*****Not in the Governmental Fund Itself!

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• Chart of Accounts is the framework of an

BARS CHART OF ACCOUNTSBARS CHART OF ACCOUNTS

accounting system

• Is a uniform system for Local Governments

• Provides the information needed for administration & reporting purposes

ll f i• Allows for comparisons• Funds have of 4 digits

• Accounts have 6 digits

• Objects have 3 digits

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BARS ‐ FUND CLASSIFICATIONS1000 - General Fund

2000 - Special Revenue Funds

33000 - Debt Service Funds

4000 - Capital Projects Funds

5000 - Enterprise Funds

6000 - Internal Service Funds

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7000 - Fiduciary Funds (Trust & Agency)

8000 - Permanent Funds

9000 - General Capital Asset/Long-Term Debt

BARS FUND CLASSIFICATION CONT.Example of further breakdown of funds:

• 5000 – 5999 – Enterprise Fundsp

505010 – Golf

515110 – Hospital/Nursing Home

525210 – Water

5353535310 – Sewer

545410 – Solid Waste

54155415 ‐ Landfill

555510 – Ambulance 44

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BARS BALANCE SHEET ACCOUNTSBARS BALANCE SHEET ACCOUNTS

1100000 - Assets and Other Debits

2200000 - Liabilities, Equity and Other Credits

Within these two groups, assets and liabilities are f th d fi d i t th l i l t i

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further defined into other logical categories depending upon the nature of the particular asset or liability.

BALANCE SHEET ACCOUNTSBALANCE SHEET ACCOUNTS

Principal groups of asset & other debit numbers:

1010 /10100000 – Cash/Investments

11110000 – Taxes/Assessments Receivable

12120000 – Other Receivables

13130000 – Due from and advance from

14140000 – Prepaid Expenses

15150000 – Inventories

16160000 – Restricted Assets

17170000 – Other Debits 46

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Example of further breakdown of an asset taccount:

11110000 – Taxes Receivable

111000 – Mobile Home Taxes Receivable

113000 – Real Taxes Receivable

115000 – Personal Taxes Receivable

116000 – Protested Taxes Receivable

118000 – Special Assessments Receivable47


Liabilities, equity & other credits numbers:

20200000 Sh t t P bl20200000 – Short‐term Payables

21210000 – Other Short‐term Payables/Due to

22220000 – Deferred Credits

23230000 – Long‐term Liabilities

24240000 – Other credits

25250000 – 27270000 – Fund Balance/Net Assets

28280000 – Investment in Capital Assets (Fund 9500)48

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BARS BARS –– REVENUE ACCOUNTSREVENUE ACCOUNTS

310000 - Taxes320000 Licenses and Permits320000 - Licenses and Permits330000 - Intergovernmental Revenues340000 - Charges for Services350000 - Fines and Forfeitures360000 - Miscellaneous Revenues

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360000 Miscellaneous Revenues370000 - Investment Earnings380000 - Other Financing Sources390000 - Internal Services

BARS BARS –– EXPENDITURE ACCOUNTSEXPENDITURE ACCOUNTS

410000 - General Government420000 Public Safety420000 - Public Safety430000 - Public Works440000 - Public Health450000 - Social/Economic Services460000 - Culture and Recreation

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460000 Culture and Recreation470000 - Housing and Community Dev.480000 - Conversation of Natural Resources490000 - Debt Service

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BARS BARS –– EXPENDITURE ACCOUNTS EXPENDITURE ACCOUNTS ––CONT.CONT.

500000 - Internal Services510000 - Miscellaneous520000 - Other Financing Uses

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520000 Other Financing Uses

BARS BARS –– OBJECTOBJECTEXPENDITURE CLASSIFICATIONSEXPENDITURE CLASSIFICATIONS

1100 - Personal Services2200 S i2200 - Supplies3300 - Purchased Services4400 - Building Materials5500 - Fixed Charges (Insurance, rent)600 Debt Service

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600 - Debt Service7700 - Grants, Contributions, Indemnities8800 - Other Objects, Transfers, Depreciation9900 - Capital Outlay

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BARS BARS –– OBJECTOBJECTEXPENDITURE CLASSIFICATIONSEXPENDITURE CLASSIFICATIONS

Example of further breakdown of object codes:

2200 – Supplies2200 Supplies

210 – Offices Supplies

220 – Operating Supplies

230 – Repair & Maintenance Supplies

231 – Fuel – Gas Oil Diesel231 – Fuel – Gas, Oil, Diesel

232 –Motor vehicle parts

233 –Machinery & equipment parts

240 – Other Repair & Maintenance Supplies

250 – Supplies for Resale 53


BUDGETARY, ACCOUNTING AND REPORTING SYSTEM (BARS) FOR MONTANA, CITIES, TOWNS AND COUNTIES

BARS ACCOUNT STRUCTUREBARS ACCOUNT STRUCTURE

Asset & Liability Accounts - (Illustration 1)

1st Digit 1 = Assets & Other Debits

1st Digit 2 = Liabilities& Other Credits

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Fund Account

Number Number

XXXX XXXXXX

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BARS ACCOUNT STRUCTURE

Asset & Liability Accounts - (Illustration 1)

1st Digit 1 = Assets & Other Debits

1st Digit 2 = Liabilities& Other Credits

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Fund Account

Number Number

1000 101000GENERAL CASH

BACK TO THE BASICSBACK TO THE BASICSBARS ACCOUNT STRUCTURE - CONT.

Revenue Accounts - (Illustration 2)

1st Digit 3= Revenue

Organization

Fund Code Major

Program Job Code (Department) Source Sub-Source Detail

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g ( p )

X XXX XXX

Optional Optional

1000 31 1 010

GENERAL TAXES GENERAL PROPERTY

TAXES

REAL ESTATE TAXES

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BARS ACCOUNT STRUCTURE - CONT.

Expenditure Accounts - (Illustration 3)

1st Digit 4 & 5 - ExpendituresOrganization

Fund Code Sub Major Sub-

Program Job Code (Department) Function Activity Activity Object Object Detail

X XXX XXX1000 42 01 40 2 2 1

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X XXX XXX

Optional Optional Optional

1000 42 01 40 2 2 1

GENERAL

PUBLIC SAFETY

LAW ENFORCEMENT

SERVICES

CRIME CONTROL & INVESTIGA-

TION

SUPPLIES

OPERATING SUPPLIES

UNIFORMS

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60

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Identify the appropriate revenue code number for the following revenue items:

Fund # Account #

1. Accruing monthly fees for garbage collections services _____________________________

REVENUE QUIZREVENUE QUIZ

2. The receipt of real estate taxes in the general fund _____________________________

3. The receipt of personal property taxes in general fund _____________________________

4. The receipt of money from the Montana Treasure State

Endowment program for a water project _____________________________

5. The receipt of interest on a capital projects fund _____________________________

6. The receipt of money from the state as an allocation from

taxes on fuel __________________________________________________________

7. The receipt of a federal Community Development Block

Grant _____________________________

8. The receipt of money from the City Judge for fines _____________________________

9. The receipt of proceeds from swimming pool collections______________________________

10. The receipt of fees collected by the clerk for copies ______________________________

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Identify the appropriate expenditure/expense code number for the following items: Fund Account Object

1. Payment of wages to the Financial Clerk _____________________

EXPENDITURE QUIZEXPENDITURE QUIZ

2. The purchase of tires for a dump truck in the road

and street department _____________________

3. The purchase of a garbage truck for use in collection ______________________

4. The purchase of envelopes for the City Judge ______________________

5. Payment for electricity for a building at the water plant ______________________

6. Payments for the rental of a backhoe paid for with

gas tax moniesgas tax monies _____________________

7. The purchase of a riding lawn mower for the park _____________________

8. Recording the depreciation of garbage equipment _____________________

9. Payment of the employer's contribution to Police Chief’s

retirement _____________________

10. Payment for the cost of the audit of the City _____________________62

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Questions…Questions…

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Local Government Services Bureau

Website: http://doa.mt.gov/lgsbAddress: 301 S Park Ave ~ Room 340PO B 200547 H l MT 59620 0547PO Box 200547 ~ Helena, MT 59620-0547Phone: 841-2909

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Lincoln

Flathead

Glacier TooleHill

BlainePhillips

Valley

Daniels Sheridan

Roosevelt

Lake

Missoula

Teton

Gallatin

Cascade

Meagher

Judith Basin

Chouteau

Sweet Grass

Fergus Garfield

McCone

Musselshell Rosebud

Richland

Dawson

Custer

Powder Carter

Fallon

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MadisonPark

Carbon

Big HornPowder River

Carter

KalispellMagda Nelson (406)[email protected]

HelenaJamie Cain(406)[email protected]

BillingsDarla Erickson(406)[email protected]

CircleTod Kasten(406) [email protected]

Jamie CainArea 1 – Helena Phone: [email protected]

Area 1 – HelenaAnaconda-Deer Lodge

Darla EricksonArea 2 – Billings Phone: 371-5627

[email protected]

Area 2 – BillingsBig HornAnaconda Deer Lodge

BeaverheadBlaine

BroadwaterButte-Silver Bow

CascadeChouteauGallatinGranite

Hillff

Big HornCarbonFergus

Golden ValleyMusselshell

ParkPetroleumRosebud

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JeffersonLewis & Clark

MadisonMeagher

PowellTeton

StillwaterSweet Grass

TreasureWheatlandYellowstone

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Tod KastenArea 3 – Circle

Phone: [email protected]

Area 3 – Miles CityCarter

Magda Nelson Area 4 – Kalispell

Phone: [email protected]

Area 4 – KalispellFlatheadCarter

CusterDanielsDawsonFallon

McConePhillips

Powder RiverP i i

FlatheadGlacierLake

LibertyLincolnMineralMissoulaPonderaR lli

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PrairieRichlandRooseveltSheridan

ValleyWibaux

RavalliSanders

Toole

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• QUIZ #1 – Account Type & Normal Balance


Q yp

Accounts to use: Normal Balances:* Asset * Debit

* Liability * Credit

* Equity

* Revenue

* Expenditure/Expense

* Contra‐asset (use 2 times)

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QUIZ #1 – Account Type & Normal Balance

TYPE OF NORMALTYPE OF NORMAL

ACCOUNT NAME ACCOUNT BALANCE

Depreciation __________ _________

Accounts Payable __________ _________

Deferred Revenue __________ _________

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__________ _________

Interest Receivable __________ ________

Assigned Fund Balance __________ _________

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QUIZ #1 - CONT.



Cash __________ _________

Amount To Be Provided __________ _________

Interest Earnings __________ _________

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g __________ _________

Allowance For Depreciation __________ ________

City Court Fines (Collected) __________ _________


QUIZ #1 - CONT.



Real Estate Taxes (Collected) __________ _________

Capital Outlay __________ _________

Warrants Payable __________ _________

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y __________ _________

Inventories __________ ________

Net Assets __________ _________

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QUIZ #1 - CONT.



Due To Other Governments __________ _________

Accounts Receivable __________ _________

Debt Service Interest __________ _________

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__________ _________

Judgments & Losses __________ ________

Prepaid Expense __________ _________


QUIZ #1 - CONT.



Bonds Payable __________ _________

Taxes Receivable __________ _________

Gas Tax Apportionment __________ _________

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pp __________ _________

Deposits Payable __________ ________

Animal Licenses __________ _________

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QUIZ #1 - CONT.



Supplies purchased _________ _________

Sale of Capital Assets __________ _________

Allowance For Uncollectible Accounts __________ _________

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__________ _________

County Option Tax __________ ________

Federal Disaster Aid __________ _________


QUIZ #1 - CONT.



Street & Road Maintenance _________ _________

Due From Other Funds __________ _________

Machinery & Equipment __________ _________

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y q p __________ _________

Fund Balance __________ ________

Charge for Copying Services (collected) __________ _________

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QUIZ #1 - CONT.



Jury Services _________ _________

Penalty & Interest on Delinq. Taxes __________ _________

Restricted for Revenue Bond __________ _________

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__________ _________

Advance to other Funds __________ ________

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40

79

80

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• Quiz #2 – Common entries– Accounts to use for this quiz:


Cash Supplies Gas Tax Apportionment Taxes Receivable Accounts Receivable Accounts Payable Interest Receivable Interest Revenue Prepaid Expense Expense (Enterprise Funds)/Expenditure (Governmental Funds) Depreciation Allowance for Depreciation Deferred Revenue Tax Revenue

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QUIZ #2 – ENTRIES

DEBIT CREDIT

Record Receipt of Gas Tax Apportionment from State

______________________________ $______

___________________________ $_______

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Record Purchase of Supplies

______________________________ $______

___________________________ $_______

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QUIZ #2 – ENTRIES CONT.

DEBIT CREDIT

Record the Receipt of Taxes

______________________________ $______

___________________________ $_______

R d th A l f E dit

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Record the Accrual of Expenditures

______________________________ $______

___________________________ $_______



DEBIT CREDITDEBIT CREDIT

Record the Payment of the Expenditure Accrual

______________________________ $______

___________________________ $_______

Record the Accrual of Interest Revenue

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Record the Accrual of Interest Revenue

______________________________ $______

___________________________ $_______

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DEBIT CREDIT


DEBIT CREDIT

Record the Receipt of the Interest Revenue

______________________________ $______

___________________________ $_______

Record Annual Depreciation Expense

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Record Annual Depreciation Expense

______________________________ $______

___________________________ $_______

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701.2 basic fund accounting

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