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 $2,746,000 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 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 $33,000 for licenses and permits and $13,000 for fines and forfeits. 2. Supplies were ordered by the following functions in early July at the estimated costs shown General Government Public Safety Public Works Culture and Recreation iscelLaneous Total $ 7,600 11,700 6,300 4,400 1,100 $31,100 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 $10,900 and $6,100, respectively. Actual Estimated Os Cost General Government Public Safety Public Works Culture and Recreation Miscellaneous Total $7,500 7,600 10,900 6,100 4,400 ,100 $30,200 $30,100 11,000 6,300 4,300 1,100

Answer 1

Journal entries

		General Ledger		Subsidary Ledger
	Accounts Title	Dr	Cr
a. To record the general fund operating budget
	Estimated Revenue	$2,838,000
	Appropriation		$2,782,000
	Budgetary Fund balance		$56,000
				Subsidary Ledger
				Dr	Cr
	Estimated Revenue Ledger
	Property taxes			$1,948,000
	Licence & Permints			380000
	Fines and Forfeits			280000
	Intergovernmnetal Revenue			230000
	Estimated Appropriation Ledger
	General Government				530000
	Public Safety				1660000
	Public works				380000
	Culture and Recreation				156000
	Miscelleneous				56000
		Dr	Cr	Dr	Cr
b	Cash	52000
1	Revenuue		52000
	(being cash received)
	Revenue ledger
	Licence and permits				37000
	Fines and Forfeits				15000
2	Encumbrances-2017	33500
	Encumbrances Outstanding		33500
	Encumbrance Ledger
	General Government			8000
	Public Safety			12500
	Public works			6700
	Culture and Recreation			4800
	Miscelleneous			1500
3	working
	Calculation of unrealized revenue
	General Government (8000-7900)	100
	Public Safety (11300-11400)	-100
	Public works (6500-6700)	-200
	Culture and Recreation (4800-4700)	100
	Miscelleneous	0
	Amt available in appropriation
	General Government (8000-7900)	100
	Public Safety (11300-11300)	0
	Public works (6500-6500)	0
	Culture and Recreation (4800-4700)	100
	Miscelleneous	0
	Apprpriation, expenditure and Encumbrance Ledger
		Encumbrance			Expenditure
	Account	Inc Dr	Dec Cr	Bal Dr	Inc dr/(cr)	balance	Appropriation	Bal
	General Governement
	Appropriation						8000	100
	Order Of supplies	8000
	Supplies Received					7900
	Public Safety
	Appropriation						11300
	Order Of supplies	12500
	Supplies Received					11400
	Public works
	Appropriation						6500
	Order Of supplies	6700				6700
	Supplies Received
	Culture and Recreation
	Appropriation						4800	100
	Order Of supplies	4800
	Supplies Received					4700
	Miscelleneous
	Appropriation						1500	0
	Order Of supplies	1500						0
	Supplies Received