The budgeted and actual revenues and expenditures of Seaside Township for a recent year (in millions) were as presented in the schedule that follows:
1. Prepare journal entries to record the budget
2. Prepare journal entries to record the actual revenues and expenditures. Assume all transactions resulted in increases or decreases in cash.
3. Prepare journal entries to close the accounts
4. Determine the net change in fund balance. Does it equal the net change in actual revenues and expenditures
Revenues Budget Actual
Property taxes 7.5 7.6
Sales taxes 2.1 2.4
Other revenues 1.6 1.5
Total revenues 11.2 11.5
Wages and salaries 6.2 6.1
Supplies 3.1 3.0
Other expenditures 1.3 1.2
Total expenditures 10.6 10.3
Increase in fund balance 0.6 1.2
The expert prepares journal entries to record budget, transactions and closing.
Prepare and analyze journal entries, closing entries
A county engages in basic transactions.
Kilbourne County engaged in the following transactions
in summary form during its fiscal year. All amounts
are in millions.
1. Its commissioners approved a budget for the current
fiscal year. It included total revenues of $860 and total
appropriations of $850.
2. It ordered office supplies for $20.
3. It incurred the following costs, paying in cash:
Repairs $ 40
Rent $ 25
Utilities $ 41
Other operating costs $119
4. It ordered equipment costing $9.
5. It received the equipment and was billed for $10, rather
than $9 as anticipated.
6. It received the previously ordered supplies and was
billed for the amount originally estimated. The county
reports the receipt of supplies as expenditures; it does
not maintain an inventory account for supplies.
7. It earned and collected revenues of $865.
a. Prepare journal entries as appropriate.
b. Prepare closing entries as appropriate.
c. What would have been the difference in the year-end
financial statements, if any, had the county not made
the budgetary entries?