Answer:
See explanation section
Explanation:
Req. A
As the general fund budget is formally integrated, the journal entry at the beginning requires to make the revenue debit and appropriations to be credit. And there must be a balancing figure to integrate the operational transfers.
Debit Revenues $1,432,500
Debit Bond proceeds 427,500
Credit Appropriations $980,000
Credit Operating transfers out 480,000
Credit Fund balance (Balance debit - credit) 400,000
Fund balance is the budgetary amount.
Req. B
At the end of the accounting period, the fund balance needs to be removed by making it debit. Most importantly, as the year wears out, all the budgetary plans will be transferred. Therefore, the journal entry is-
Debit Appropriations $980,000
Debit Operating transfers out 480,000
Credit Fund balance (Req. A) $400,000
Credit Revenues $1,432,500
Credit Bond proceeds 427,500
