Question

Preparation of financial statements

The commissioners of the Regents Park Commission Special Revenue Fund approved the following budget for calendar year 2019. Assume that the fund balance (Restricted) at the beginning of the year was $10,000. Also, assume that no encumbrances were outstanding and no supplies were on hand at the beginning or the end of the year. Prepare a statement of revenues, expenditures, and changes in fund balance. In addition, prepare a budgetary comparison schedule, assuming the originally approved budget and the final budget are identical.

Estimated Revenues
Property taxes	$300,000
Concession rentals	100,000
Fees and user charges	200,000		$600,000
Appropriations
Wages and salaries	$200,000
Capital equipment	240,000
Transfer to Debt Service Fund	60,000
Supplies	50,000		550,000
Budgeted Increase in Fund Balance			$50,000
During the year, actual revenues were as follows:
Property taxes	$300,000
Concession rentals	120,000
Fees and user charges	185,000
Actual expenditures were as follows:
Wages and salaries	$199,000
Capital equipment	236,000
Transfer to Debt Service Fund	60,000
Supplies	48,000

Answer 1

Variance Favorable - Positive Amounts

Variance Unfavorable - Negative Amounts