At the end of its fiscal year, the City of Lancaster owes public safety workers $18,000 and general government employees $12,000 for work performed related to General Fund activities prior to its December 31^st fiscal year end. The employees are not paid until January 10^th of the following year. What journal entry, if any, should the City of Lancaster make to record this transaction in its General Fund on December 31^st?
a.
$\begin{array}{lll}\text { Salaries expense-public safety } & 18,000 & \\\text { Salaries expense-general government } & 12,000 & \\\quad \text { Accrued salaries payable } & & 30,000\end{array}$

b.
$\begin{array}{lll} \text {Encumbrances--salaries}&30,000\\ \text {Budgetary fund balance reserved for encumbrances}&&20,000\end{array}$

c.
$\begin{array}{ll}\text { Expenditures-public safety salaries } & 18,000 \\\text { Expenditures-general government salaries } & 12,000 \\\text { Accrued salaries navable } &&30,000\end{array}$

d. No entry is required because this transaction relates to an activity accounted for in the General Fund.

Question

At the end of its fiscal year, the City of Lancaster owes public safety workers $18,000 and general government employees $12,000 for work performed related to General Fund activities prior to its December 31^st fiscal year end. The employees are not paid until January 10^th of the following year. What journal entry, if any, should the City of Lancaster make to record this transaction in its General Fund on December 31^st?
a.

\begin{array}{lll}\text { Salaries expense-public safety } & 18,000 & \\\text { Salaries expense-general government } & 12,000 & \\\quad \text { Accrued salaries payable } & & 30,000\end{array}

b.

\begin{array}{lll} \text {Encumbrances--salaries}&30,000\\ \text {Budgetary fund balance reserved for encumbrances}&&20,000\end{array}

c.

\begin{array}{ll}\text { Expenditures-public safety salaries } & 18,000 \\\text { Expenditures-general government salaries } & 12,000 \\\text { Accrued salaries navable } &&30,000\end{array}

d. No entry is required because this transaction relates to an activity accounted for in the General Fund.

Quizplus · Accepted Answer

The Answer of At the end of its fiscal year, the City of Lancaster owes public safety workers $18,000 and general government employees $12,000 for work performed related to General Fund activities prior to its December 31^st fiscal year end. The employees are not paid until January 10^th of the following year. What journal entry, if any, should the City of Lancaster make to record this transaction in its General Fund on December 31^st? a. $\begin{array}{lll} \text { Salaries expense-public safety } & 18,000 & \ \text { Salaries expense-general government } & 12,000 & \ \quad \text { Accrued salaries payable } & & 30,000 \end{array}$ b. $\begin{array}{lll} \text {Encumbrances--salaries}&30,000\ \text {Budgetary fund balance reserved for encumbrances}&&20,000 \end{array}$ c. $\begin{array}{ll} \text { Expenditures-public safety salaries } & 18,000 \ \text { Expenditures-general government salaries } & 12,000 \ \text { Accrued salaries navable } &&30,000 \end{array}$ d. No entry is required because this transaction relates to an activity accounted for in the General Fund.

At the End of Its Fiscal Year, the City of Lancaster