The Federal Bureau of Building Construction (BBC) receives an annual appropriation to perform construction activities. BBC does not use commitment accounting; instead, it obligates funds upon the award of contracts.
Prepare budgetary and proprietary journal entries to record the following transactions:
a. BBC received an appropriation of $2,000,000.
b. The Office of Management and Budget apportioned $500,000 of the appropriation to the Department of Domestic Construction, which oversees the BBC.
c. The Department allotted the entire $500,000 apportionment to the BBC.
d. BBC awarded a building construction contract for $300,000.
e. The contractor completed construction of the building. Because of a change order, however, the total cost of the work was $324,000. BBC accepted the work and recorded the asset and the invoice for $324,000.
f. BBC sent a disbursement schedule to the Treasury requesting payment of the $324,000.
g. Treasury notified BBC that payment was made to the contractor for $324,000.
h. At year-end, BBC recorded six months' depreciation ($16,200) on the building

Question

The Federal Bureau of Building Construction (BBC) receives an annual appropriation to perform construction activities. BBC does not use commitment accounting; instead, it obligates funds upon the award of contracts. 
Prepare budgetary and proprietary journal entries to record the following transactions:
a. BBC received an appropriation of $2,000,000.
b. The Office of Management and Budget apportioned $500,000 of the appropriation to the Department of Domestic Construction, which oversees the BBC.
c. The Department allotted the entire $500,000 apportionment to the BBC.
d. BBC awarded a building construction contract for $300,000.
e. The contractor completed construction of the building. Because of a change order, however, the total cost of the work was $324,000. BBC accepted the work and recorded the asset and the invoice for $324,000.
f. BBC sent a disbursement schedule to the Treasury requesting payment of the $324,000.
g. Treasury notified BBC that payment was made to the contractor for $324,000.
h. At year-end, BBC recorded six months' depreciation ($16,200) on the building

Quizplus · Accepted Answer

The Answer of The Federal Bureau of Building Construction (BBC) receives an annual appropriation to perform construction activities. BBC does not use commitment accounting; instead, it obligates funds upon the award of contracts. 
Prepare budgetary and proprietary journal entries to record the following transactions:
a. BBC received an appropriation of $2,000,000.
b. The Office of Management and Budget apportioned $500,000 of the appropriation to the Department of Domestic Construction, which oversees the BBC.
c. The Department allotted the entire $500,000 apportionment to the BBC.
d. BBC awarded a building construction contract for $300,000.
e. The contractor completed construction of the building. Because of a change order, however, the total cost of the work was $324,000. BBC accepted the work and recorded the asset and the invoice for $324,000.
f. BBC sent a disbursement schedule to the Treasury requesting payment of the $324,000.
g. Treasury notified BBC that payment was made to the contractor for $324,000.
h. At year-end, BBC recorded six months' depreciation ($16,200) on the building

The Federal Bureau of Building Construction (BBC) Receives an Annual