3-22 Recording General Fund Operating budget and Operating Transactions (A and B Only)
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. 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, 2016, the beginning of the Town’s 2017 fiscal year.
b. Prepare journal entries to record the following transactions that occurred during the month of July 2016.
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:
General Government $7,400
Public Safety 11,300
Public Works 6,100
Culture and Recreation 4,200
Miscellaneous 900
Total $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.
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 $29,900 $29,100
