Assume That the City of Juneau Maintains Its Books and Records

question 39

Multiple Choice

Assume that the City of Juneau maintains its books and records to facilitate the preparation of its government-wide financial statements. The city pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the general fund had earned $90,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30) . They will earn $60,000 on Thursday and Friday (July 1 and 2) . What entry, if any, should be made on the government-wide financial statements?

• A) Debit Expenditures $90,000; credit Accrued wages and salary $90,000.
• B) Debit Expenses $90,000; credit Accrued wages and salary $90,000.
• C) Debit Expenditures $90,000; credit Encumbrances $90,000.
• D) Debit Expenses $90,000; credit Encumbrances $90,000.

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Definitions:

Earners

Individuals or entities that receive income through work, investments, or any other source of revenue.

Top 1 Percent

The segment of the population that earns the highest income, often used in discussions of income inequality.

Earners

Individuals or entities that receive income in exchange for providing goods or services, or through investments.