Question

Due Saturday by 11:59pm Points 40 Submitting a file upload Available Oct 20 at 12am - Nov 30 at 11:59pm about 1 month Solve the problems below as indicated. Upload the completed assignment to this link. 1-Assume that a city approves the following budget for the year: Estimated revenues......................$136,540 Estimated other financing sources........... 32,000 Appropriations .......... .(148,890) Net change in fund balance................ $19,650 Required: Prepare the journal entry to record the budget. 2. Assume that a town places an order for a truck with an estimated cost of $39.850. When the truck is delivered, the actual cost is $45,600. Required: Prepare the journal entry to record the issuance of the purchase order and its payment when the truck is delivered. 3. Hamilton Township needs to make its closing entries to close out its budgetary and operating accounts. Assume that Hamilton Township has a balance remaining of $275,000 in encumbrances outstanding as of the end of the year. The outstanding invoices are expected to be honored in the next fiscal year. Required: Prepare the journal entries to close the encumbrance account. 4. Assume that a town sells a truck that it had originally purchased for $65,000 for a cash sale price of $30,000. Required: Prepare the journal entry to record the sale

Answer 1

	Journal entries
S.No.	Particulars	Amount (Dr.)	Amount (Cr.)
1	Estimated revenues                              Dr.	$136,540
	Estimated other financing sources Dr.	$32,000
	Appropriations                                      Cr.		$148,890
	Budgetary Fund balance                   Cr.		$19,650
	(Being budget recorded)
2	Encumbrances                                            Dr.	$39,850	$39,850
	Fund balance reserved for encumbrances   Cr.
	(Being purchase order issued for truck)
	Fund balance reserved for encumbrances    Dr.	$39,850
	Encumbrances                                                           Cr.		$39,850
	Expenditures                                                             Dr.	$45,600
	Vouchers payable                                                    Cr.		$45,600
	(Being entries reversed in encumbrance a/c based on budgeted price and recorded in expenditure a/c at actual cost)
3	Budgetary Fund balance              Dr.	$275,000
	Encumbrances                                                       Cr.		$275,000
	(Being balance in encumbrance A/c closed and c/f)
4	Other financing sources Dr.	$30,000
	General Fund Dr.	$ 35,000
	Asset A/c Cr.		$ 65,000