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 of $2,539,000 as follows: property taxes, $1,844,000; licenses and permits, $315,000; fines and forfeits, $215,000; and intergovernmental (state grants), $165,000. The budget approved appropriations of $2,496,000 as follows: General Government, $465,000; Public Safety, $1,530,000; Public Works, $315,000; Culture and Recreation, $143,000; and Miscellaneous, $43,000.

Required

1. a. & b. Prepare the journal entry (or entries), to record the Town of Bedford Falls’s General Fund operating budget on July 1, the beginning of the Town’s 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 Falls’s General Fund operating budget on July 1, the beginning of the Town’s fiscal year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. Revenues were collected in cash amounting to $48,000 for licenses and permits and $20,500 for fines and forfeits.
2. Supplies were ordered by the following functions in early July at the estimated costs shown:

General Government	$	9,100
Public Safety		14,700
Public Works		7,800
Culture and Recreation		5,900
Miscellaneous		2,600
Total	$	40,100

3. 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 $12,400 and $7,600, respectively.

	Actual Cost				Estimated Cost
General Government	$	9,000			$	9,100
Public Safety		12,500				12,400
Public Works		7,800				7,600
Culture and Recreation		5,800				5,900
Miscellaneous		2,600				2,600
Total	$	37,700			$	37,600

3. Calculate the amount of budgeted but unrealized revenues in total and from each source as of July 31. (Input all amounts as positive values.)

4. Calculate the amount of available appropriation in total and for each function as of July 31.(Input all amounts as positive values.)

Answer 1

Please find below spreadsheet useful to get desired results: -

A

General Ledger Subsidiary Ledger 1 a) Debits Credits Debits Credits 2 3 ESTIMATED REVENUES 2,539,000 BUDGETARY FUND 4 43,000 BALANCE APPROPRIATIONS 2,496,000 7 Estimated Revenues Ledger: 1,844,000 315,000 215,000 TAXES 8. LICENSES AND PERMITS 10 FINES AND FORFEITS 11 INTERGOVERNMENTAL 12 REVENUES 165,000 13 Appropriations Ledger: 14 GENERAL GOVERNMENT 465,000 15 PUBLIC SAFETY 1,530,000 16 PUBLIC WORKS 315,000 17 PARKS AND RECREATION 143,000 43,000 18 MISCELLANEOUS

B.

Н R Subsidiary Ledger General Ledger Debits Credits Debits Subsidiary Ledger b) General Ledger Debits Credits Debits Credits Credits 2. 1| CASH 68,500 Expenditures Ledger: 68,500 9,000 12,500 REVENUES GENERAL GOVERNMENT 4 Revenues Ledger: PUBLIC SAFETY 48,000 PUBLIC WORKS LICENSES AND PERMITS 7,800 FINES AND FORFEITS 20,500 PARKS AND RECREATION 5,800 2 ENCUMBRANCES 2,600 40,100 MISCELLANEOUS RESERVE FOR ENCUMBRANCES Encumbrances Ledger: 40,100 10 11 GENERAL GOVERNMENT 9,100 12 14,700 PUBLIC SAFETY 13 PUBLIC WORKS 7,800 14 PARKS AND RECREATION 5,900 15 MISCELLANEOUS 2,600 16 3 RESERVE FOR 17 ENCUMBRANCES 37,600 18 37,600 ENCUMBRANCES 19 EXPENDITURES 37,700 20 37,700 CASH 21 Encumbrances Ledger: 22 9,100 12,400 7,600 5,900 GENERAL GOVERNMENT 23 PUBLIC SAFETY 24 PUBLIC WORKS 25 PARKS AND RECREATION 26 MISCELLANEOUS 2,600 27

C and D

CALCULATION OF BUDGETED BUT UNREALIZED REVENUES AS OF JULY 31, 2016 UNREALIZED 3 SOURCE BUDGETED ACTUAL REVENUE 5 PROPERTY TAXES 1,844,000 315,000 1,844,000 267,000 6 LICENSES AND PERMITS 48,000 20,500 FINES AND FORFEITS 215,000 194,500 8 INTERGOVERNMENTAL 165,000 165,000 TOTAL 2,539,000 2,470,500 68,500 10 11 D.. Calculate the amount of available appropriation in total and for each function as of July 31, 2016. 12 AVAILABLE 13 ENCUMBRANCES EXPENDITURES APPROPRIATIONS APPROPRIATIONS 14 15 GENERAL GOVERNMENT 465,000 9,000 456,000 16 PUBLIC SAFETY 1,530,000 315,000 2,300 12,500 7,800 5,800 1,515,200 307,000 137,200 17 PUBLIC WORKS 200 143,000 18 PARKS AND RECREATION 19 MISCELLANEQUS 2,600 43,000 40,400 2,455,800 20 TOTAL 2,500 2,496,000 37,700

Note: -

Encumbrances

Public safety = 14,700-12,400 = 2,300

Public works = 7,800-7,600 = 200