In: Accounting
(Recording the budget and a budget revision)
The council of the Town of Tulia approved the 2013 budget as follows:
Budgeted 2013 revenues from:
Property taxes $5,000,000
Sales taxes $1,000,000
Appropriations for 2013:
Salaries $4,600,000
Materials $1,200,000
Equipment $100,000
During 2013, the town’s mayor presented the council with a budget revision to increase the amount of appropriation for salaries by $10,000. The council approved this budget revision.
a. Prepare the general journal entry necessary to initially record the budget.
b. Prepare the general journal entry necessary to record the budget revision.
Answer | |||
Sr.N | General Journal | Debit | Credit |
A | Estimated property tax revenue | $ 50,00,000 | |
Estimated sales tax revenue | $ 10,00,000 | ||
To appropriation for salary | $ 46,00,000 | ||
To appropriation for Material | $ 12,00,000 | ||
To appropriation for Equipment | $ 1,00,000 | ||
To Budgetary fund balance | $ 1,00,000 | ||
(To record budget entry ) | |||
B | Budgetary fund balance | $ 10,000 | |
To appropriation for salary | $ 10,000 | ||
( To record revision in budget made ) | |||
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