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CHAPTER 3:

GOVERNMENTAL OPERATING STATEMENT ACCOUNTS; BUDGETARY


ACCOUNTING

3-18.
Debits
a.

ESTIMATED REVENUES

Credits

32,150,000

BUDGETARY FUND BALANCE

25,000

APPROPRIATIONS
b.

32,175,000

The answer is no to both parts of the question. Subject to an ordinance or policy that requires a minimum
end-of-year fund balance, any spendable fund balances above that amount can be considered available for
appropriation in the same manner as revenues and other financing sources. Consequently, if the sum of any
excess fund balances and estimated revenues exceeds appropriations, then town officials would be in compliance
with any balanced budget requirement. In fact, legislative bodies often budget the use of a portion of fund balance
if it exceeds any minimum requirement established by law or policy.

c.

Fund BalanceUnassigned at 9-30-2016 after all closing entries will be $505,000, as shown below:
SPENDABLE FUND BALANCES
Fund BalanceUnassigned as of 9-30-2015

$ 500,000

To close revenues for the year

32,190,000

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To close expenditures for the year

(32,185,000)

Fund BalanceUnassigned as of 9-30-2015

$ 505,000

General Problem Information: Recording budget, Ending spendable fund balance


Learning Objective: 3-4
Topic: Budgetary Accounting
Blooms Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: Reporting, Critical Thinking
Level of Difficulty: Easy

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3-20.

Town of Willingdon
General Ledger
Debits
ESTIMATED REVENUES

Credits

Subsidiary Ledger
Debits

Credits

16,650,000

BUDGETARY FUND
BALANCE
APPROPRIATIONS

50,000
16,600,000

Estimated Revenues Ledger:


TAXES

15,000,000

INTERGOVERNMENTAL REVENUES

1,000,000

LICENSES AND PERMITS

400,000

FINES AND FORFEITS

150,000

MISCELLANEOUS REVENUES

100,000

Appropriations Ledger:
GENERAL GOVERNMENT

8,000,000

PUBLIC SAFETY

6,000,000

PUBLIC WORKS

1,550,000

HEALTH AND WELFARE

950,000

3-3

MISCELLANEOUS

100,000

General Problem Information: Recording the budget


Learning Objective: 3-4
Topic: Recording the budget
Blooms Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application
Level of Difficulty: Easy
3-22.
General Ledger
Debits
a.

ESTIMATED REVENUES

Credits

Subsidiary Ledger
Debits

2,700,000

BUDGETARY FUND
BALANCE
APPROPRIATIONS

50,000
2,650,000

Estimated Revenues Ledger:


TAXES

1,900,000

LICENSES AND PERMITS

350,000

FINES AND FORFEITS

250,000

INTERGOVERNMENTAL
REVENUES

200,000

Appropriations Ledger:

3-4

Credits

GENERAL GOVERNMENT

500,000

PUBLIC SAFETY

1,600,000

PUBLIC WORKS

350,000

CULTURE AND RECREATION

150,000

MISCELLANEOUS

50,000

b.
General Ledger
Debits
1.

CASH

Credits

Subsidiary Ledger
Debits

Credits

43,000

REVENUES

43,000

Revenues Ledger:

2.

LICENSES AND PERMITS

31,000

FINES AND FORFEITS

12,000

ENCUMBRANCES2017

29,900

ENCUMBRANCES
OUTSTANDING2017

29,900

Encumbrances Ledger:
GENERAL GOVERNMENT

7,400

PUBLIC SAFETY

11,300

PUBLIC WORKS

6,100

3-5

CULTURE AND RECREATION

4,200

MISCELLANEOUS
3.

900

ENCUMBRANCES
OUTSTANDING2017

29,100

ENCUMBRANCES2017
EXPENDITURES2017

29,100
29,200

CASH

29,200

Encumbrances Ledger:
GENERAL GOVERNMENT

7,400

PUBLIC SAFETY

10,700

PUBLIC WORKS

5,900

CULTURE AND RECREATION

4,200

MISCELLANEOUS

900

Ch. 3, Solutions, 3-22 b. 3. (Cont'd)

General Ledger
Debits

Credits

Subsidiary Ledger
Debits

Expenditures Ledger:
GENERAL GOVERNMENT

7,300

PUBLIC SAFETY

10,800

PUBLIC WORKS

6,100

CULTURE AND RECREATION

4,100

MISCELLANEOUS

900
3-6

Credits

c. CALCULATION OF BUDGETED BUT UNREALIZED REVENUES


AS OF JULY 31, 2016
UNREALIZED
SOURCE
PROPERTY TAXES

d.

BUDGETED
$1,900,000

ACTUAL

REVENUE

-0-

$1,900,000

LICENSES AND PERMITS

350,000

31,000

319,000

FINES AND FORFEITS

250,000

12,000

238,000

INTERGOVERNMENTAL

200,000

-0-

200,000

CALCULATION OF AVAILABLE APPROPRIATIONS, AS OF JULY 31, 2016


AVAILABLE
APPROPRIATIONS

ENCUMBRANCES

$ 500,000

$ -0-

$ 7,300

$ 492,700

PUBLIC SAFETY

1,600,000

600

10,800

1,588,600

PUBLIC WORKS

350,000

200

6,100

343,700

CULTURE AND RECREATION

150,000

-0-

4,100

145,900

50,000

-0-

900

49,100

$2,650,000

$800

$29,200

$2,620,000

GENERAL GOVERNMENT

MISCELLANEOUS
TOTAL

General Problem Information: Recording budgetary and operating transactions


Learning Objective: 3-1, 3-3, 3-4
Topic: Budgetary Control of Encumbrances and Expenditures

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EXPENDITURES

APPROPRIATIONS

Blooms Taxonomy: Apply


Accreditation Skills tag: AACSB: Knowledge Application
Level of Difficulty: Med

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3-25.
WESTOVER VILLAGE
Statement of Activities (partial)
For the Year Ended June 30, 2017
Net (Expense)
Revenue and
Changes in Net
Assets
Expenses
Functions/Programs
Primary Government
General government
Public safety
Health and sanitation
Culture and recreation
Interest on long-term debt
Total governmental activities

$ 9,571
34,844
6,738
12,352
6,068
$ 69,573

Program Revenues
Charges for
Operating
Capital
Services
Grants
Grants
$ 3,146
1,198
5,612
3,995
_______
$ 13,951

$ 843
1,307

$ 62

2,450
_____
$4,600

____
$ 62

General revenues:
Property taxes
Unrestricted grants and contributions
Investment earnings
Total general revenues
Special itemgain on sale of park land
Total general revenues and special
items
Change in net position
Net positionJuly 1, 2016
Net positionJune 30, 2017

3- 9

Governmental
Activities
$

(5,582)
(32,277)
(1,126)
(5,907)
(6,068)
(50,960)
56,300
1,200
1,958
59,458
3,473
62,931
11,971
1,643
$13,614

General Problem Information:


Government-wide Statement of
Activities
Learning Objective: 3-1
Topic: Classification of Estimated
Revenues and Revenues
Blooms Taxonomy: Apply
Accreditation Skills tag: AACSB:
Knowledge Application,
AICPA: FN Reporting
Level of Difficulty: Medium

3-10

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