Question

For each of the summarized transactions for the Village of Sycamore General Fund, prepare the general ledger journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

The budget was formally adopted, providing for estimated revenues of $1,070,000 and appropriations of $996,000.

Revenues were received, all in cash, in the amount of $1,010,000.

Purchase orders were issued in the amount of $479,000.

Of the $479,000 in (c), purchase orders were filled in the amount of $470,500; the invoice amount was $470,000 (not yet paid).

Expenditures for payroll not encumbered amounted to $510,000 (not yet paid).

Amounts from (d) and (e) are paid in cash.

Answer 1

S. No.		Dr. $	Cr.$
1	Estimated Revenue Control	1,070,000
	Appropriations Control		996,000
	Budgetary Fund Balance		74,000
2	Cash	1,010,000
	Revenue Control		1,010,000
3	Reserve For Encumbrance	479,000
	Encumbrance Control		479,000
4	Reserve for Encumbrance	470,500
	Encumbrance Control		470,500
	Expenditure Control	470,000
	Accounts Payable		470,000
5	Expenditure Control	510,000
	Accounts Payable		510,000
6	Accounts Payable (470,000 + 510,000)	980,000
	Cash		980,000