Final answer:
d. General Fund: Yes; Governmental Activities: Yes
Liabilities for accrued payroll should be recorded in both the General Fund and Governmental Activities journals, ensuring that all operating expenses and liabilities are accurately reflected in the government's financial records.
Step-by-step explanation:
The question pertains to how liabilities for accrued payroll should be recorded in governmental accounting. Specifically, we need to evaluate whether the accrued payroll should be recorded in both the General Fund and Governmental Activities journals.
The correct answer is:
d. General Fund: Yes; Governmental Activities: Yes
According to the principles of governmental accounting, accrued liabilities, like payroll that has been earned but not yet paid, should be recorded in the General Fund because this fund is used to account for everyday operating expenses and liabilities.
Similarly, the Governmental Activities journal, which represents the government's overall financial position and operations, would also include these payroll liabilities to present a full picture of the governmental entity's financial status. Therefore, the recording of accrued payroll liabilities would be reflected in both journals.
The correct answer is option a. General Fund: Yes; Governmental Activities: No.
Accrued payroll liabilities represent the amount owed to employees for work performed but not yet paid at the end of the accounting period.
These liabilities are recorded in the general fund because they are related to normal operations of the government entity.
However, they are not recorded in the governmental activities since they do not affect the overall financial position of the government as a whole.
For example, if a government entity has $10,000 in accrued payroll at year-end, it would be recorded as a liability in the general fund, but not in the governmental activities column of the financial statements.