Accounting and Reporting Principles Essay Example | Topics and Well Written Essays - 750 words

write up and Reporting Principles - Essay ExampleIn the same audit, the revenues should as well be traced so they can give opinions as to whether all change received as taxes or government revenues are properly recorded and remitted to the towns treasury. The ledger entries below record the subject by the town of a three-year note to purchase police vehicles. The ledger entries recorded in the general journals of the General Fund differ from those recorded in the general journals for political activities at the government-wide level. The General Fund general journal reflects the creation of temporary accounts videlicet, Other Financing Sources-Proceeds of Three-Year keep an eye on and Expenditures-Capital Outlay upon the issuance of notes and the purchase of the vehicles. On the other hand, the government-wide level general journal reflects the recording of assets and liabilities, namely the Transportation Equipment and the Notes account payable. This is because the account ing books of the General Fund are mostly concerned only with the inflow and fountain of the current financial resources of the town. Meanwhile, the books for the government-wide entity should show all transactions affecting the net assets of the town thus, the specific accounts much(prenominal) as Transportation Equipment, Notes Payable, then subsequently, the Depreciation Expense and Interest Expense are used.General scriptDebitCreditGeneral Fund Cash120,000 Other Financing Sources-Proceeds of Three-Year Note120,000 To record the issuance of the 3-year note. Expenditures - Capital Outlay120,000 Cash120,000 To record the purchase of 4 police vehicles.Governmental Activities, Government-wide Cash120,000 Notes Payable120,000 To record the issuance of the 3-year note. Transportation Equipment120,000 Cash120,000 To record the purchase of 4 police vehicles.Works CitedAccounting for Government and Nonprofit Entities (as