Question

The town council of Riverside estimated revenues for 2020 to be $878,412 from property taxes and $211,588 from business licenses. The appropriations budget from the council was as follows:

General government	$	411,000
Parks and recreation		142,000
Sanitation		122,000
Streets and sidewalks		192,000

In April, heavy spring rains caused some flooding near the river. As a result, a picnic area at River’s Edge Park was ruined and several damaged shops had to shut down. The council adopted an upward revision of $82,000 for the parks and recreation budget and reduced the estimated revenues from business licenses by $62,000.

The General Fund began the year with a balance of $65,000. During the year, tax collections totaled $881,100 and revenues from business licenses were $143,200. Expenditures were $381,000 for general government, $226,100 for parks and recreation, $125,200 for sanitation, and $173,333 for streets and sidewalks. There are no outstanding encumbrances at year-end.

Required:
Prepare a budgetary comparison schedule for the General Fund for 2020. (Negative variance amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

For the Year Ended December 31, 2020 Budgeted Amounts Actual Amounts (Budgetary Basis) Variance with Final Budget Positive (Negative) Original Final Revenues: 0 0 0 0 Total Revenues Expenditures and Encumbrances: 0 0 0 0 Total Expenditures and Encumbrances Excess (Deficiency) of Revenues Over Expenditures and Encumbrances Fund Balance, Beginning Fund Balance, Ending $ 0 $ 0 $ 0 $ $ 0

Answer 1

Answer
Town council of Riverside
Budgetary Comparision Schedule
General Fund
For the year ended December 31,2020
	Budgeted Amounts		Actual Amounts	Variance with final budget
	Original	Final
Revenues:
Property Taxes	$     8,78,412	$     8,78,412	$        8,81,100	$             2,688
Business Licenses	$     2,11,588	$     1,49,588	$        1,43,200	$            -6,388
Total Revenues	$   10,90,000	$   10,28,000	$      10,24,300	$            -3,700
Expenditure and Encumbraces :
General government	$     4,11,000	$     4,11,000	$        3,81,000	$           30,000
Parks and recreation	$     1,42,000	$     2,24,000	$        2,26,100	$            -2,100
Sanitation	$     1,22,000	$     1,22,000	$        1,25,200	$            -3,200
Street and sidewalks	$     1,92,000	$     1,92,000	$        1,73,333	$           18,667
Total Expenditure and Encumbraces	$     8,67,000	$     9,49,000	$        9,05,633	$           43,367
Excess (Deficiency)of revenues over Expenditure and Encumbraces	$     2,23,000	$        79,000	$        1,18,667	$          -47,067
Fund balance, beginning	$        65,000	$        65,000	$           65,000	$                   -
Fund balance, ending	$     2,88,000	$     1,44,000	$        1,83,667	$          -47,067
*$211,588-$62,000 = $149,588
*$142,000+$82,000=$224,000