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 $2700000 as follows: property taxes $1900000; licenses and permits $350000; fines and forfeits $250000; and intergovernmental (state grants) $200000. The budget approved appropriations of $2650000 as follows: General Government $500000; Public Safety $1600000; Public Works $350000; Culture and Recreation $150000; and Miscellaneous $50000.

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 $31000 for licenses and permits and $12000 for fines and forfeits.

2. Supplies were ordered by the following functions in early July 2016 at the estimated costs shown:

General Government $7400

Public Safety 11300

Public Works 6100

Culture and Recreation 4200

Miscellaneous 900

Total $29900

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 $10700 and $5900 respectively.

Actual Cost Estimated Cost

General Government $7300 $7400

Public Safety 10800 10700

Public Works 6100 5900

Culture and Recreation 4100 4200

Miscellaneous 900 900

Total $29900 $29100