Question:
1. The Budgetary Comparison Schedule for the City of Salem appears in Illustration 2-16. Assume the general and subsidiary ledgers for the General Fund were lost after a water pipe burst. You are charged with reproducing the journal entries that took place during the year ended December 31, 2012.
Use the excel file provided to prepare summary journal entries, including subsidiary ledger entries, for the following events.
a. Record the original budget.
b. Record the revisions to the budget.
c. Record the actual revenues.
d. Record the encumbrances, assuming all expenditures originated as encumbrances and the encumbrance and expenditure are equal in amount.
e. Record the actual expenditures and reversal of the associated encumbrance.
You should follow the format of the entries provided in entries 1 to 7 of the appendix to Chapter.