The general fund of Caldwell had the following operating budget for the fiscal year beginning July 1,2009: When the general fund records its operating budget on July 1,2009,Budgetary Fund Balance-Unreserved should be
A)credited for $600,000.
B)debited for $900,000.
C)debited for $600,000.
D)credited for $900,000.

Question

Quizplus · Accepted Answer

When the general fund records its operating budget on July 1, 2009, Budgetary Fund Balance-Unreserved should be credited for the amount of the excess of estimated revenues over estimated expenditures. In this case, the estimated revenues are $1,500,000 and the estimated expenditures are $900,000, so the excess is $600,000. Therefore, Budgetary Fund Balance-Unreserved should be credited for $600,000.

The General Fund of Caldwell Had the Following Operating Budget