Assignment 1- 10 Marks Government Accounting (0502360) On 20/10 A state hospital contracts...
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Accounting
Assignment 1- 10 Marks Government Accounting (0502360)
On 20/10 A state hospital contracts for air conditioning repair services that it estimates will cost $50,000.
On 15/12 the contactor completed ONLY 20% of the contract and bills the university $9,900. On 26/12 the hospital paid the contactor in full for the services provided.
On 15/11 year 2 the contractor provided another 60% of the required services and bills the hospital $30,000
On 1/12 year 2 the hospital paid the $30,000 bill.
On 3/3 year 3 the contractor completed the remaining 20% of the contract and bills the hospital $10,800 for the services provided. The hospital paid the bill right away.
Required: prepare ALL the necessary journal entries for encumbrances for years 1 to 3 (i.e. till the end of the contact and closing entry of year 3) using the governmental GAAP method.
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