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The budget for Muncie, IN, population 2,758, was passed for fiscal year 2020. Due to additional police and healthcare related emergency due to COVID-19, the

The budget for Muncie, IN, population 2,758, was passed for fiscal year 2020. Due to additional police and healthcare related emergency due to COVID-19, the mayor and city council revised the budget as follows: Sales tax estimates were reduced by $39,000; Federal grants of $120,000 were expected to be received due to the virus (this was not in the original budget); Appropriations for public safety increased $30,000; and, Appropriations for public health increased $80,000.


39. In the General Fund, the journal entry to record the budget adjustment for the reduction in estimated sales taxes and the anticipated federal grant would include a:

A. Credit to Estimated Revenues, $39,000.

B. Debit to Other Financing Sources, $120,000.

C. Credit to Appropriations, $80,000.

D. Debit to Estimated Other Financing Uses, $120,000.

40. In the General Fund, the journal entry to record the budget adjustment for the increase in appropriations from expected increased funding for public safety and public health would include a:

A. Debit to Appropriations, $110,000.

B. Credit to Estimated Other Financing Sources, $120,000.

C. Debit to Estimated Revenues, $39,000.

D. Credit to Appropriations, $110,000.


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