Question - The Town of Bedford Falls 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 -
a&b. Prepare the journal entry (or entries), to record the Town of Bedford Falls's General Fund operating budget on July 1, 2016, the beginning of the Town's 2017 fiscal year and also record the following transactions that occurred during the month of July 2016. Also show entries in the subsidiary ledger accounts, to record the Town of Bedford Falls's General Fund operating budget on July 1, 2016, the beginning of the Town's 2017 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 $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:
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General Government
|
$7,400
|
|
Public Safety
|
11,300
|
|
Public Works
|
6,100
|
|
Culture and Recreation
|
4,200
|
|
Miscellaneous
|
900
|
|
Total
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$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.
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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
|
Journal Entry Worksheet
1) Record the Town of Bedford Falls's General Fund operating budget on July 1, 2016, the beginning of the town's 2017 fiscal year.
2) Revenues were collected in cash amounting to $31,000 for licenses and permits and $12,000 for fines and forfeits.
3) Record the issuance of the purchase orders and contracts.
4) Record the issuance of the purchase orders and contracts.
5) Record the cash paid for expenses.
c. Calculate the amount of budgeted but unrealized revenue in total and from each source as of July 31, 2016.
d. Calculate the amount of available appropriation in total and for each functions as of July 31, 2016.