The Federal Bureau of Nutrition Standards (BNS), a unit of the Health Department, is responsible for establishing standards for the quality and nutritional content of packaged food products.
Prepare budgetary and proprietary entries to record the following transactions for the month of October 2020. (BNS does not use commitment accounting.)
a. BNS received an appropriation in the amount of $900,000.
b. The Office of Management and Budget apportioned the entire appropriation.
c. The Health Department made the first quarter's allotment of $225,000 to BNS.
d. BNS placed a purchase order for $14,000 for testing supplies.
e. All the supplies arrived in good order. The vendor submitted an invoice for $15,000 because additional supplies were shipped. (The purchase order permitted a 10 percent delivery overrun.) The invoice was accepted by BNS, and the supplies were placed in inventory.
f. BNS sent a disbursement schedule to Treasury, requesting payment of the $15,000 invoice.
g. Treasury notified BNS that the $15,000 invoice was paid.
h. BNS used $6,000 of the supplies acquired in transaction e. (BNS charges all expenses to the account "Inspection program costs.")
i. BNS sent a disbursement schedule to Treasury, requesting salary checks in the amount of $100,000.
j. Treasury sent salary checks to BNS in the amount of $100,000 for payment to BNS employees.
k. BNS made adjusting journal entries to accrue salary expenses in the amount of $8,000, so it could prepare month-end financial statements.

Question

The Federal Bureau of Nutrition Standards (BNS), a unit of the Health Department, is responsible for establishing standards for the quality and nutritional content of packaged food products. 
Prepare budgetary and proprietary entries to record the following transactions for the month of October 2020. (BNS does not use commitment accounting.)
a. BNS received an appropriation in the amount of $900,000.
b. The Office of Management and Budget apportioned the entire appropriation.
c. The Health Department made the first quarter's allotment of $225,000 to BNS.
d. BNS placed a purchase order for $14,000 for testing supplies.
e. All the supplies arrived in good order. The vendor submitted an invoice for $15,000 because additional supplies were shipped. (The purchase order permitted a 10 percent delivery overrun.) The invoice was accepted by BNS, and the supplies were placed in inventory.
f. BNS sent a disbursement schedule to Treasury, requesting payment of the $15,000 invoice.
g. Treasury notified BNS that the $15,000 invoice was paid.
h. BNS used $6,000 of the supplies acquired in transaction e. (BNS charges all expenses to the account "Inspection program costs.")
i. BNS sent a disbursement schedule to Treasury, requesting salary checks in the amount of $100,000.
j. Treasury sent salary checks to BNS in the amount of $100,000 for payment to BNS employees.
k. BNS made adjusting journal entries to accrue salary expenses in the amount of $8,000, so it could prepare month-end financial statements.

Quizplus · Accepted Answer

The Answer of The Federal Bureau of Nutrition Standards (BNS), a unit of the Health Department, is responsible for establishing standards for the quality and nutritional content of packaged food products. 
Prepare budgetary and proprietary entries to record the following transactions for the month of October 2020. (BNS does not use commitment accounting.)
a. BNS received an appropriation in the amount of $900,000.
b. The Office of Management and Budget apportioned the entire appropriation.
c. The Health Department made the first quarter's allotment of $225,000 to BNS.
d. BNS placed a purchase order for $14,000 for testing supplies.
e. All the supplies arrived in good order. The vendor submitted an invoice for $15,000 because additional supplies were shipped. (The purchase order permitted a 10 percent delivery overrun.) The invoice was accepted by BNS, and the supplies were placed in inventory.
f. BNS sent a disbursement schedule to Treasury, requesting payment of the $15,000 invoice.
g. Treasury notified BNS that the $15,000 invoice was paid.
h. BNS used $6,000 of the supplies acquired in transaction e. (BNS charges all expenses to the account "Inspection program costs.")
i. BNS sent a disbursement schedule to Treasury, requesting salary checks in the amount of $100,000.
j. Treasury sent salary checks to BNS in the amount of $100,000 for payment to BNS employees.
k. BNS made adjusting journal entries to accrue salary expenses in the amount of $8,000, so it could prepare month-end financial statements.

The Federal Bureau of Nutrition Standards (BNS), a Unit of the Health