1. The council of the Town approved the 2017 budget as follows:

Budgeted 2017 revenues from:

Property taxes $4,000,000

Sales taxes $3,000,000

Appropriations for 2017:

Salaries $3,000,000

Materials $ 2,000,000

Equipment $1,000,000

During 2017, the town presented a budget revision to increase the amount of appropriation for salaries by $300,000. The council approved this budget revision.

Required:

a. Prepare the general journal entry necessary to initially record the budget.

b. Prepare the general journal entry necessary to record the budget revision.