Acct 562 Assignment 2

Topics: Income tax, Tax, Taxation, 1966, General ledger, Balance sheet / Pages: 9 (2172 words) / Published: Apr 20th, 2013
Chapter 4: Problems 4–4, 4–6, 4–10, and 4–11

3–9. Recording General Fund Operating Budget and Operating Transactions. The Town of Bedford Falls approved a General Fund operating budget for the fiscal year ending June 30, 2011. 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; Parks and Recreation, $150,000; and Miscellaneous, $50,000.

Summary
General Fund operating budget: fiscal year ending June 30, 2011
Budget: revenues of $2,700,000 property taxes: $1,900,000 licenses and permits: $350,000 fines and forfeits: $250,000 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
Parks and Recreation: $150,000
Miscellaneous: $50,000

Required :
a. Prepare the journal entry (or entries), including subsidiary ledger entries, to record the Town of Bedford Falls’s General Fund operating budget on July 1, 2010, the beginning of the Town’s 2011 fiscal year.
Answer:
General Ledger Subsidiary ledger
Estimated Rev DR: $2,700,000
Budgetary fund Bal. CR: $2,700,000
Taxes DR: $1,900,000
Intergovernmental Rev. DR: $200,000
Licenses & Permits DR: $350,000 b. Prepare journal entries to record the following transactions that occurred during the month of July 2010.

1.Revenues were collected in cash amounting to $31,000 for licenses and permits and $12,000 for fines and forfeits.
Answer:
licenses and permits (Subsidiary Ledger)
DR: Licenses & Permits $31,000
CR: Cash $31,000

fines and forfeits (general ledger)
DR: Estimated Rev $12,000
CR: Budgetary fund bal. $12,000

2. Supplies were

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