Question

A state whose fiscal year ends June 30, 2019, had the following transactions and events. For each item, compute how much total expenditures the state will report in the General Fund Statement of revenues, expenditures, and changes in fund balance for the year ended June 30, 2019. 1. During the year, the state paid salaries of $3,600,000. Its employees also earned $150,000 during the period June 23 to June 30, but the payroll for that period will be paid on July 12.

Answer 1

Answer:

$3,750,000

Explanation:

The total amount of expense = current salaries +accrued salaries

The total amount of expense = $3,600,000+ $150,000

The total amount of expense= $3,750,000

The salaries are those expenses that are paid from the current financial resources. If the salaries are not being paid in the current year due to any reason it will be an accrued expense to the company and has to be paid in next year.