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Accounting Manual for Public School DistrictsCHAPTER 7 – General Journal EntriesTable of ContentsPageINTRODUCTION . 1Overview of Basic Accounting Equations . 1JOURNAL ENTRIES . 2Opening Entries . 2Fiscal Year Opening Entry – All Funds Except Fiduciary Funds . 2Fiscal Year Opening Entry – Budgetary Accounts – All Funds Except Fiduciary Funds. 4Fiscal Year Opening Entry – Fiduciary Funds . 4Periodic Entries . 6Local Receipts. 6NSF Check. 6Warrant Cancellation and Unclaimed Property . 6County Treasurer Monthly Entry (From County Treasurer Report F-197) . 7State Apportionment Monthly Entry . 11Taxes Levied, Received, and Adjusted . 12Accounts Payable—Encumbrances – Accrual Districts Only . 12Accounts Receivable – Accrual Districts Only . 13Budget Modifications . 13Payroll . 14Refund of Expenditure . 15Refund of Revenue. 15Sale of Equipment . 15Debit–Credit Transfers . 15Inventory—Perpetual Method . 16Inventory—Periodic Method . 17Interfund Activity Entries . 18Interfund Loan Entries . 18Interfund Transfer Entries. 19Capital Projects Technology and Maintenance Transfers . 20COBRA Benefits . 21COBRA Benefit Payment Receipt . 21COBRA Benefit Vendor Payment . 21Time and Effort Adjustments . 21Self-Insured Industrial Insurance. 23Security Deposit Required by L&I for a Deposit Held in Trust . 23Expenditure for Industrial Insurance Benefits and the Liability Claims. 23Payment of Benefit Claims, Administrative Assessments, and Reinsurance Premiums . 24Payments for Industrial Insurance Benefit Related Expenditures . 24Chapter 7 – General Journal EntriesTable of Contents7-iEffective Date: 9-1-18
Accounting Manual for Public School DistrictsSelf-Insured Unemployment Compensation . 24Expenditure of Unemployment Benefits During Payroll . 24Payment of Unemployment Benefits and Administrative Assessment to the EmploymentSecurity Department . 25Compensated Absence Pools . 25Deferred Compensation . 26Contracts Payable . 27Long-Term . 27Adjustments – Prior Fiscal Year – Immaterial Errors . 28Adjustments – Prior Fiscal Year – Material Errors . 28Refund of Expenditures Paid in a Prior Fiscal Year . 28Refund of Prior Fiscal Year Tax Receipts . 28Correction of an Error in Recording the Prior Fiscal Year Physical Inventory . 28Correction of Prior Fiscal Year Accruals That Were Missed in Error . 29Adjustments – Prior Fiscal Year – Fund Entity Changes . 29Adjustments – Optional Journal Entry Related to Prior Period Adjustments . 29Accruals . 30Accounts Payable Accruals as of the End of the Fiscal Year . 30Payroll Accruals as of the End of the Fiscal Year . 30Grant Accruals . 30Accrued Interest. 31Payment of Interest on Bonds Including Accrued Interest Payable . 31Annual Entries . 31Commodities . 31Deferred Inflows of Resources. 32Prepaid Items . 32Revenue Receivables . 33Closing Entries . 34Closing Entries – All Funds (Except Fiduciary Funds) . 34Closing Entries – Budgetary Accounts . 34Closing Entries – Permanent Fund (PF), Private Purpose Trust Fund (PPTF), Pension TrustFund (PTF), Agency Fund (AF) . 35Closing Entries – Fiduciary Fund . 36Restrictions of Fund Balance. 36Restricted for Unequalized Deductible Revenue (Cash Basis Districts Only) . 37Accrual of Deductible Revenue Recovery (Accrual Basis Districts Only) . 38Commitment of Fund Balance . 38Assignment of Fund Balance . 39SHARED SERVICE ARRANGEMENTS JOURNAL ENTRIES . 39With Fiscal Agent Responsibilities . 39Background for All Scenarios . 39Chapter 7 – General Journal EntriesTable of Contents7-iiEffective Date: 9-1-18
Accounting Manual for Public School DistrictsScenario 1 – Fiscal Agent as a Participating District . 40Scenario 2 – Fiscal Agent as a Non-Participating District With Administrative Responsibilities. 41Scenario 3 – Fiscal Agent as a Non-Participating District With No AdministrativeResponsibilities (Cash Conduit Only) . 43Scenario 4 – Fiscal Agent as a Participating District With Administrative Responsibilities andOn Behalf Payments. 44CAPITAL LEASE JOURNAL ENTRIES. 45Present Value Method . 45Amortization Method . 45General Fund Acquisition of Equipment With a Capital Lease . 46General Fund First Capital Lease Payment . 46General Fund Second Capital Lease Payment . 47SHORT-TERM OBLIGATION JOURNAL ENTRIES . 47To Record Loan From Bank on a RAN . 47To Record Maturation of the RAN, With Interest. 47CONDITIONAL SALES CONTRACTS OR LONG-TERM NON-VOTED NOTES. 48To Record the Long-Term Payable . 48Debt Maturity . 48To Record the Reduction in the Long-Term Payable . 48To Record the Maturation of Debt in the Fund Which Received the Debt Proceeds . 49BOND ISSUE AND BOND REFUNDING JOURNAL ENTRIES . 49Bond Issues . 49Bond Issue Example . 51Bond Issue Journal Entry Example . 53Bond Refunding . 54Bond Refunding Example . 56Bond Refunding Journal Entry Example . 58Journal Entries for the Regular Method of Advance Bond Debt Refunding . 59Journal Entries for the Crossover Method of Advance Bond Debt Refunding . 60LOCAL OPTION CAPITAL ASSET LENDING (LOCAL) PROGRAM JOURNAL ENTRIES. 62CAPITAL PROJECTS FUND ENTRIES . 64Capital Projects Fund State Matching Journal Entries . 64Capital Projects Fund State Matching Paid Directly to the Contractor . 64Capital Projects Fund State Matching Paid to the District . 64Capital Projects Fund State Matching Paid to the Di
Chapter 7 – General Journal Entries 7-i Effective Date: 9-1-18 Table of Contents CHAPTER 7 – General Journal Entries Table of Contents Page INTRODUCTION . 1 Overview of Basic Accounting Equations. 1 JOURNAL ENTRIES . 2 Opening Entries. 2 Fiscal Year Opening Entry – All Funds Except Fiduciary Funds. 2 Fiscal Year Opening Entry – Budgetary Accounts – All Funds .
