1. Prepare a budgetary comparison statement for the General Fund of Murphy County for the 20X8 fiscal year. The statement should present revenues (by source category), expenditures and encumbrances (by function), and the excess of revenues over (under) expenditures and encumbrances. Use these column headings: Original Budget Revised Budget Actual Variance-Favorable (Unfavorable) Assume that no encumbrances were outstanding at the beginning of 20X8. 2. Because encumbrances do not constitute expenditures, some governmental fund budgetary comparison statements omit data on encumbrances. (a) If no encumbrances were outstanding at the beginning of 20X8, what effects would omission of encumbrances data have on the Murphy County General Fund budgetary comparison statement for the 20X8 fiscal year? (b) In what circumstances would including or excluding encumbrances data mislead users of a governmental fund budgetary comparison statement? (Budgetary Comparison Statement) This problem is based on the information about the Murphy County General Fund budgeted and actual transactions and events described in Problem 4-2. P4-2 (Budgetary and Other Entries-General and Subsidiary Ledgers) The Murphy County Commissioners adopted the following General Fund budget for the 20X8 fiscal year: Murphy County General Fund Budget- 20X8 Estimated Revenues: Taxes..... $ 8,000,000 Licenses and Permits.... Intergovernmental. . Charges for Services Fines and Forfeits 800,000 2,000,000 200,000 400,000 Other... 600,000 12,000,000 Appropriations: General Government... Public Safety .... Highways and Streets.. 1,000,000 4,000,000 5,000,000 Health and Sanitation... 900,000 Culture and Recreation 400,000 Other.... 600,000 11,900,000 Excess of Estimated Revenues over Appropriations.. Fund Balance-Beginning... Fund Balance-Ending (Anticipated). 100,000 1,400,000 $ 1,500,000