Question
The Town of Bedford Falls approved a General Fund operating budget for the fiscal year beginning on July 1. The budget provides for estimated revenues
The Town of Bedford Falls approved a General Fund operating budget for the fiscal year beginning on July 1. The budget provides for estimated revenues of $2,746,000 as follows: property taxes, $1,916,000; licenses and permits, $360,000; fines and forfeits, $260,000; and intergovernmental (state grants), $210,000. The budget approved appropriations of $2,694,000 as follows: General Government, $510,000; Public Safety, $1,620,000; Public Works, $360,000; Culture and Recreation, $152,000; and Miscellaneous, $52,000.
Required
-
a. & b. Prepare the journal entry (or entries), to record the Town of Bedford Fallss General Fund operating budget on July 1, the beginning of the Towns fiscal year and also record the following transactions that occurred during the month of July. Also show entries in the subsidiary ledger accounts, to record the Town of Bedford Fallss General Fund operating budget on July 1, the beginning of the Towns fiscal year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- Revenues were collected in cash amounting to $33,000 for licenses and permits and $13,000 for fines and forfeits.
- Supplies were ordered by the following functions in early July at the estimated costs shown:
| General Government | $ | 7,600 | ||
| Public Safety | 11,700 | |||
| Public Works | 6,300 | |||
| Culture and Recreation | 4,400 | |||
| Miscellaneous | 1,100 | |||
| Total | $ | 31,100 |
- During July, supplies were received at the actual costs shown below and were paid in cash. General Government, Culture and Recreation, and Miscellaneous received all supplies ordered. Public Safety and Public Works received part of the supplies ordered earlier in the month at estimated costs of $10,900 and $6,100, respectively.
| Actual Cost | Estimated Cost | |||||||
| General Government | $ | 7,500 | $ | 7,600 | ||||
| Public Safety | 11,000 | 10,900 | ||||||
| Public Works | 6,300 | 6,100 | ||||||
| Culture and Recreation | 4,300 | 4,400 | ||||||
| Miscellaneous | 1,100 | 1,100 | ||||||
| Total | $ | 30,200 | $ | 30,100 | ||||
Encumbrances
| General Government | $510,000 | $7,500 | $502,500 | |
| Public Safety | 1,620,000 | ? | 11,000 | |
| Public Works | 360,000 | ? | 6,300 | |
| Culture and Recreation | 152,000 | 4,300 | 147,700 | |
| Miscellaneous | 52,000 | 1,100 | 50,900 | |
| Total | $2,694,000 | $0 | $30,200 | $701,100 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson
3rd Edition
1861529465, 9781861529466
