Estimated Revenues are $4,500,000,and Appropriations are $4,000,000,the journal entry for the budget must include a:

Question

Quizplus · Accepted Answer

The budget entry is to record estimated revenues and appropriations, so there is no need for an encumbrance. The difference between the two amounts is $500,000, which represents the excess of estimated revenues over appropriations. This excess is credited to the Budgetary Fund balance to reflect the increase in available resources. Therefore, the correct option is a Credit to Budgetary Fund balance for 500,000.

Estimated Revenues Are $4,500,000,and Appropriations Are $4,000,000,the Journal Entry for the Budget