Problem - Subsidiary Ledgers. The printout of the Estimated Revenues and Revenues subsidiary ledger accounts for the General Fund of the City of Salem as of February 28, 2011, appeared as follows:
01 01 45 1 9,600,000 9,600,000 02 28 45 6 (20,000) 9,580,000 0 01 01 45 1 1,600,000 1,600,000 01 31 27 4 640,000 960,000 02 27 27 7 200,000 760,000 01 01 45 1 3,200,000 3,200,000 02 28 27 7 1,500,000 1,700,000 01 01 45 1 600,000 600,000 02 28 27 7 160,000 440,000
Required Assuming that this printout is correct in all details and that there are no other General Fund revenue classifications, answer the following questions. Show all necessary computations in good form.
a. What should be the balance of the Estimated Revenues control account?
b. What was the original approved budget for Estimated Revenues for 2011?
c. (1) Was the FY 2011 Estimated Revenues budget adjusted during the year?
(2) If so, when?
(3) If so, by how much?
(4) If so, was the original budget increased or decreased?
d. What should be the balance of the Revenues control account?
e. If in the Folio column of the accounts the numerals 45 stand for general journal and the numerals 27 stand for cash receipts journal, what is the most likely reason that revenues from Property Taxes are first recognized in a general journal entry, whereas revenues from the other three sources are first recognized in cash receipts journal entries.