Preparation of appropriations ledger

Prepare an appropriations ledger to record the transactions and events applicable to the appropriations for policefringe benefits and policesupplies. The ledger should have columns for appropriation (Cr.), encumbrances (Dr. and Cr.), expenditures (Dr.), and available appropriation (Cr.) similar to Table 3-6. Transactions and events occurred in the village of Kowitt Gorge during the calendar year 2022: 1.

Adopted budget
Estimated revenues:
Property taxes	$1,665,000
All other revenues	270,000
Total revenues	$1,935,000
Appropriations:
All departments other than police	$900,000
Policesalaries	540,000
Policefringe benefits	405,000
Policesupplies	72,000
Total appropriations	$1,917,000

2. The village received, in cash, property taxes of $1,656,000 and all other revenues of $265,500. 3. The village made cash payments, charging the following appropriations:

Accounts
All departments other than police	$900,000
Policesalaries	$535,500
Policefringe benefits	$351,000

4. The administrator of fringe benefits received an invoice for police employee health insurance in the amount of $85,500, together with a letter from the insurance provider, explaining that the large increase was caused by a change in federal laws. The invoice could not be paid because the Policefringe benefits appropriation had a balance of only $54,000 (appropriation of $405,000 minus expenditures in item 3 of $351,000. As a result, the village commissioners amended the budget as follows:

Adjustments	Amounts
Increase: Appropriation for policefringe benefits	$31,500
Decrease: Appropriation for policesalaries	4,500
Decrease: Appropriation for policesupplies	22,500
Use of fund balance	4,500

5. The village paid the invoice of $85,500, referred to in item 4 above, charging the appropriation for policefringe benefits. 6. The police department placed PO 2022a for firearms in the amount if $27,000 and PO 2022b for uniforms in the amount of $18,000, all charged to the appropriation for policesupplies. 7. After receiving PO 2022a, the supplier notified the police department that a change in the design of the weapons would increase the the cost to $28,800. The department sent the supplier an amended PO, increasing it by $1,800. 8. The police department received the uniforms ordered in PO 2022b, together with an invoice for $18,000. The department approved the invoice for payment.

Note: Use negative signs with your answers when appropriate.

Appropriation Ledger
Appropriation: Police - Fringe Benefits
					Available
	Appropriation	Encumbrances		Expenditures	Appropriation
Item	Cr.	Dr.	Cr.	Dr.	Cr.
1 Budget	Answer	Answer	Answer	Answer	Answer
3 Payment	Answer	Answer	Answer	Answer	Answer
4 Amend Budget	Answer	Answer	Answer	Answer	Answer
5 Payment	Answer	Answer	Answer	Answer	Answer

Appropriation Ledger
Appropriation: Police - Supplies
					Available
	Appropriation	Encumbrances		Expenditures	Appropriation
Item	Cr.	Dr.	Cr.	Dr.	Cr.
1 Budget	Answer	Answer	Answer	Answer	Answer
4 Amend Budget	Answer	Answer	Answer	Answer	Answer
6 PO 2022a	Answer	Answer	Answer	Answer	Answer
PO 2022b	Answer	Answer	Answer	Answer	Answer
7 PO 2022a	Answer	Answer	Answer	Answer	Answer
8 PO 2022b	Answer	Answer	Answer	Answer	Answer
PO 2022b Expenditure	Answer	Answer	Answer	Answer	Answer

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