government and not for profit accounting 2
Budget Journal Entries
Explain why the journal entries that you prepared for Parts A, B, and C are appropriate. Cite your sources for why you prepared the journal entries the way that you did for each of the parts below.
Part A: Johnson City adopted the following General Fund budget for fiscal year 2017: |
Estimated revenues: |
||
Taxes |
$ |
15,000,000 |
Intergovernmental revenues |
1,000,000 |
|
Licenses and permits |
400,000 |
|
Fines and forfeits |
150,000 |
|
Miscellaneous revenues |
100,000 |
|
Total estimated revenues |
$ |
16,650,000 |
Appropriations: |
||
General government |
$ |
8,000,000 |
Public safety |
6,000,000 |
|
Public works |
1,550,000 |
|
Health and welfare |
950,000 |
|
Miscellaneous |
100,000 |
|
Total appropriations |
$ |
16,600,000 |
Required |
|
Prepare the general journal entries to record the adopted budget at the beginning of FY 2017 |
Part B. During July 2016, the first month of the 2017 fiscal year, the Town of Willingdon issued the following purchase orders and contracts. |
General government |
$ |
800,000 |
Public safety |
400,000 |
|
Public works |
75,000 |
|
Health and welfare |
65,000 |
|
Miscellaneous |
25,000 |
|
Total purchase orders and contracts |
$ |
1,365,000 |
Required |
Prepare the general journal entry to record the issuance of the purchase orders and contracts. |
Part C:
The Johnson City’s legislative group approved a General Fund operating budget for the fiscal year ending June 30, 2017. 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. |
Revenues were collected in cash amounting to $31,000 for licenses and permits and $12,000 for fines and forfeits. |
|
2. |
Supplies were ordered by the following functions in early July 2016 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 2016, 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