prepare journal entries
780.000 Chapter 3 Budgetary Considerations in Governmental Accounting 1. The village commissioners adopted the following budget: Estimated revenues Property taxes... All other revenues... Total revenues $1.850.000 300,000 $2,150,000 Appropriations All departments other than police Police-salaries Police-fringe benefits .... Police-supplies - Total appropriations .... $1,000,000 600,000 450,000 80.000 $2,130,000 2. The village received, in cash, property taxes of $1.840,000 and all other revenues of $295.000 3. The village made cash payments, charging the following appropriations All departments other than police... Police salaries .... Police-fringe benefits... $1,000,000 595,000 390,000 4. The administrator of fringe benefits received an invoice for police employee health insurance in the amount of $95.000, 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 Po- lice fringe benefits appropriation had a balance of only $60,000 (appropriation of $450.000 minus expenditures in item 3 of $390,000). As a result, the village commissioners amended the budget as follows: Increase: Appropriation for police-fringe benefits.... Decrease: Appropriation for police-salaries.... Decrease: Appropriation for police-supplies.... Use of fund balance...... $35,000 5,000 25,000 5,000 5. The village paid the invoice for $95.000, referred to in item 4 above, charging the appropriation for police-fringe benefits. 6. The police department placed PO 2019a for firearms in the amount of $30,000 and PO 2019b for uniforms in the amount of $20.000. all charged to the appropriation for police-supplies. 7. After receiving PO 2019a, the supplier notified the police department that a change in the design of the weapons would increase the cost to $32.000. The department sent the supplier an amended PO, increasing it by $2,000. 8. The police department received the uniforms ordered on PO 2019b, together with an invoice for $20,000. The department approved the invoice for payment. 780.000 Chapter 3 Budgetary Considerations in Governmental Accounting 1. The village commissioners adopted the following budget: Estimated revenues Property taxes... All other revenues... Total revenues $1.850.000 300,000 $2,150,000 Appropriations All departments other than police Police-salaries Police-fringe benefits .... Police-supplies - Total appropriations .... $1,000,000 600,000 450,000 80.000 $2,130,000 2. The village received, in cash, property taxes of $1.840,000 and all other revenues of $295.000 3. The village made cash payments, charging the following appropriations All departments other than police... Police salaries .... Police-fringe benefits... $1,000,000 595,000 390,000 4. The administrator of fringe benefits received an invoice for police employee health insurance in the amount of $95.000, 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 Po- lice fringe benefits appropriation had a balance of only $60,000 (appropriation of $450.000 minus expenditures in item 3 of $390,000). As a result, the village commissioners amended the budget as follows: Increase: Appropriation for police-fringe benefits.... Decrease: Appropriation for police-salaries.... Decrease: Appropriation for police-supplies.... Use of fund balance...... $35,000 5,000 25,000 5,000 5. The village paid the invoice for $95.000, referred to in item 4 above, charging the appropriation for police-fringe benefits. 6. The police department placed PO 2019a for firearms in the amount of $30,000 and PO 2019b for uniforms in the amount of $20.000. all charged to the appropriation for police-supplies. 7. After receiving PO 2019a, the supplier notified the police department that a change in the design of the weapons would increase the cost to $32.000. The department sent the supplier an amended PO, increasing it by $2,000. 8. The police department received the uniforms ordered on PO 2019b, together with an invoice for $20,000. The department approved the invoice for payment
