Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 3

Budgetary accounting. Given the following information, you have been asked to record the budget for the general fund of the city of Jackson.
1. Inflows for 2018 are expected to total $402,000 and include property tax revenue of $205,000, fines of $7,000, state grants of $90,000, and bond issue proceeds of $100,000.
2. Expenditures for general operations and equipment purchases for the year are estimated to be $500,000.
3. Authorized transfers include $20,000 to the debt service fund to pay interest on bond indebtedness and $10,000 to the capital projects fund to pay for cost overruns on construction of a new civic center.
4. Additional estimated receipts include a $15,000 operating transfer from the special revenue fund and a $50,000 payment from the Electric Utility Enterprise Fund for property taxes.