Question

The board of commissioners of the City of Hartmoore adopts a general fund budget for the year ending June 30, 2020. It includes revenues of $1,530,000, bond proceeds of $402,500, appropriations of $1,100,000, and operating transfers out of $502,500. 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?

Answer 1

Solution :

Estimated revenues = $1,530,000

Other financing sources - bond proceeds = $402,500

Appropriations = $1,100,000

Est other fin uses = $502,500

Budgetary fund balance = $195,000

Appropriations = $1,100,000

Est other fin uses = $502,500

Budgetary fund balance =  $195,000

Est Rev = $1,530,000

Other fin sources bond proceeds = $402,500