The board of commissioners of the city of Jarmaine adopted a General fund budget for the year ending June 30, 2018, which indicated tax levy revenues of $1,300,000, bond proceeds of $520,000, appropriations for government operations of $1,170,000, and operating transfers out of $390,000. If this budget is formally integrated into the accounting records, what journal entry is required at the beginning of the year? What later entry is required?

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Business

Ivan Travis

16 May, 06:27

The board of commissioners of the city of Jarmaine adopted a General fund budget for the year ending June 30, 2018, which indicated tax levy revenues of $1,300,000, bond proceeds of $520,000, appropriations for government operations of $1,170,000, and operating transfers out of $390,000. If this budget is formally integrated into the accounting records, what journal entry is required at the beginning of the year? What later entry is required?

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Johnathon Douglas · Answer 1

A. General journal

Dr Estimated Revenues Control 1,300,000 Dr Estimated Other Financing Sources - Bond Proceeds 520,000

Cr Appropriations Control 1,170,000

Cr Appropriations - Other Financing Uses - Operating Transfers Out 390,000

Cr (Budgetary) Fund Balance 260,000

B. General Journal

Dr Appropriation Control 1,170,0000

Dr Appropriations - Other Financing Uses - Operating Transfers Out 390,000

Dr (Budgetary) Fund Balance 260,000

Cr Estimated Revenues Cr Control 1,300,000

Cr Estimated Other Financing Sources - Bond Proceeds 520,000

Budgetary Fund balance workings

1,300,000-1,170,000 = 130,000

520,000 - 390,000 = 130,000

130,000+130,000 = 260,000