Assume that the Township of Arrington maintains its books and records in a manner that facilitates preparation of the fund financial statements. The township engaged in the following transactions related to its general fund during the current fiscal year. The township formally integrates the budget into the accounting records. The township does not maintain an inventory of supplies.
Required:
Prepare, in summary form, the appropriate journal entries.
Use the following Accounts for your Journal Entries: Cash Appropriations Expenditures - Salaries Expenditures - Supplies Estimated Revenues Encumbrances Reserve for Encumbrances Revenue - Taxes Fund Balance Accounts Payable
(a) The borough council approved a budget with revenues estimated to be $1,500,000 and expenditures of $1,480,000.
(b) The borough ordered supplies at an estimated cost of $55,000.
(c) The borough incurred and paid salaries during the year totaling $975,000.
(d) The borough received an invoice for all of the supplies ordered in part (b) at an actual cost of $54,500. Account Debit Credit
(e) The borough collected tax revenues of $1,485,000.