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 $2,700,000 as follows: property taxes, $1,900,000; licenses and permits, $350,000; fines and forfeits, $250,000; and intergovernmental (state grants), $200,000. The budget approved appropriations of $2,650,000 as follows: General Government, $500,000; Public Safety, $1,600,000; Public Works, $350,000; Culture and Recreation, $150,000; and Miscellaneous, $50,000.

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.)

2. Revenues were collected in cash amounting to $31,000 for licenses and permits and $12,000 for fines and forfeits.

3. Supplies were ordered by the following functions in early July at the estimated costs shown:

General Government	$	7,400
Public Safety		11,300
Public Works		6,100
Culture and Recreation		4,200
Miscellaneous		900
Total	$	29,900

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 $10,700 and $5,900, respectively.

	Actual Cost				Estimated Cost
General Government	$	7,300			$	7,400
Public Safety		10,800				10,700
Public Works		6,100				5,900
Culture and Recreation		4,100				4,200
Miscellaneous		900				900
Total	$	29,200			$	29,100

Requirement 1

Journal entry worksheet

a. Record the Town of Bedford Falls’s General Fund operating budget on July 1, the beginning of the Town’s fiscal year.

b. Revenues were collected in cash amounting to $31,000 for licenses and permits and $12,000 for fines and forfeits.

c. Record the issuance of the purchase orders and contracts.

d. Record the reversal of the purchase orders.

e. Record the cash paid for expenses.

Requirement 2

Requirement 3

Answer 1

Part 1

Date	General Journal	Debit	Credit
July 1	Estimated Revenues	2700000
	Budgetary Fund Balance		50000
	Appropriations		2650000
July 31	Cash	43000
	Revenues (31000+12000)		43000
July 31	Encumbrances	29900
	Encumbrances Outstanding		29900
July 31	Encumbrances Outstanding	29200
	Encumbrances		29200
July 31	Expenditures	29100
	Cash		29100

TOWN OF BEDFORD FALLS

Revenues Ledger

Account Description	Est Revenues Dr (Cr)	Revenues Cr (Dr)	Balance Dr (Cr)
Taxes
Budget	1,900,000		1,900,000
Licenses and Permits
Budget	350,000		350000
Cash collected		31000	319000
Fines and Forfeits
Budget	250,000		250000
Cash collected		12000	238000
Intergovernmental Revenues
Budget	200,000		200,000

TOWN OF BEDFORD FALLS

Appropriations, Expenditures, and Encumbrances Ledger

	Encumbrances			Expenditures
Account/Description	IncreaseDr	Decrease(Cr)	Balance Dr(Cr)	Increase Dr(Cr)	Balance Dr(Cr)	Appropriations Cr(Dr)	Balance Cr(Dr)
General Government
Appropriations						500,000	500,000
Order of Supplies	7400		7400		0		492600
Supplies received		7400		7300	7300		492700
Public Safety
Appropriations						1,600,000	1,600,000
Order of Supplies	11300		11300		0		1588700
Supplies received		10700	600	10800	12800		1588800
Public Works
Appropriations						350,000	350000
Order of Supplies	6100		6100		0		343900
Supplies received		5900	200	6100	6100		343700
Culture and Recreation
Appropriations						150,000	150000
Order of Supplies	4200		4200		0		145800
Supplies received		4200	0	4100	4100		145900
Miscellaneous
Appropriations						50,000	50000
Order of Supplies	900		900		0		49100
Supplies received		900		900			49100