Question

The Town of Bedford Falls approved a General Fund operating budget for the fiscal year beginning on July 1. The budget provides for estimated revenues of $2,539,000 as follows: property taxes, $1,844,000; licenses and permits, $315,000; fines and forfeits, $215,000; and intergovernmental (state grants), $165,000. The budget approved appropriations of $2,496,000 as follows: General Government, $465,000; Public Safety, $1,530,000; Public Works, $315,000; Culture and Recreation, $143,000; and Miscellaneous, $43,000.

Required

1. a. & b. Prepare the journal entry (or entries), to record the Town of Bedford Falls’s General Fund operating budget on July 1, the beginning of the Town’s fiscal year and also record the following transactions that occurred during the month of July. Also show entries in the subsidiary ledger accounts, to record the Town of Bedford Falls’s General Fund operating budget on July 1, the beginning of the Town’s fiscal year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. Revenues were collected in cash amounting to $48,000 for licenses and permits and $20,500 for fines and forfeits.
2. Supplies were ordered by the following functions in early July at the estimated costs shown:

General Government	$	9,100
Public Safety		14,700
Public Works		7,800
Culture and Recreation		5,900
Miscellaneous		2,600
Total	$	40,100

3. During July, 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 $12,400 and $7,600, respectively.

	Actual Cost				Estimated Cost
General Government	$	9,000			$	9,100
Public Safety		12,500				12,400
Public Works		7,800				7,600
Culture and Recreation		5,800				5,900
Miscellaneous		2,600				2,600
Total	$	37,700			$	37,600

TOWN OF BEDFORD FALLS Appropriations, Expenditures, and Encumbrances Ledger Encumbrances Expenditures Account/Description Increase Dr Decrease Cr Balance Dr (Cr) Dr (Cr) Balance Dr (Cr) Appropriations Cr (Dr) Balance Cr (Dr) General Government Appropriations Order of Supplies Supplies received Public Safety Appropriations Order of Supplies Supplies received Public Works Appropriations Order of Supplies Supplies received Culture and Recreation Appropriations Order of Supplies Supplies received Miscellaneous Appropriations Order of Supplies Supplies received

Answer 1

Part a. & b.

Date	General Journal	Debit	Credit
July 1	Estimated Revenues	2539000
	Budgetary Fund Balance		43000
	Appropriations		2496000
July 31	Cash	68500
	Revenues (48000+20500)		68500
July 31	Encumbrances	40100
	Encumbrances Outstanding		40100
July 31	Encumbrances Outstanding	37600
	Encumbrances		37600
July 31	Expenditures	37700
	Cash		37700

TOWN OF BEDFORD FALLS

Revenues Ledger

Account Description	Est Revenues Dr (Cr)	Revenues Cr (Dr)	Balance Dr (Cr)
Taxes
Budget	1,844,000		1,844,000
Licenses and Permits
Budget	315,000		315000
Cash collected		48000	267000
Fines and Forfeits
Budget	215,000		215000
Cash collected		20500	194500
Intergovernmental Revenues
Budget	165,000		165,000

TOWN OF BEDFORD FALLS

Appropriations, Expenditures, and Encumbrances Ledger

	Encumbrances			Expenditures
Account/Description	IncreaseDr	Decrease(Cr)	Balance Dr(Cr)	Increase Dr(Cr)	Balance Dr(Cr)	Appropriations Cr(Dr)	Balance Cr(Dr)
General Government
Appropriations						465,000	465,000
Order of Supplies	9100		9100		0		455900
Supplies received		9100		9000	9000		456000
Public Safety
Appropriations						1,530,000	1,530,000
Order of Supplies	14700		14700		0		1515300
Supplies received		12400	2300	12500	12500		1515400
Public Works
Appropriations						315,000	315000
Order of Supplies	7800		7800		0		307200
Supplies received		7600	200	7800	7800		307000
Culture and Recreation
Appropriations						143,000	143000
Order of Supplies	5900		5900		0		137100
Supplies received		5900	0	5800	5800		137200
Miscellaneous
Appropriations						43,000	43000
Order of Supplies	2600		2600		0		40400
Supplies received		2600		2600			40400