A public school district formally adopted a budget with estimated revenues of $800 and approved expenditures of $780.Which of the following is the appropriate entry to record the budget?
A)Debit Estimated revenues $800; credit Appropriations $780; credit Fund balance $20.
B)Debit Appropriations $780; Debit Fund balance $20; credit Estimated revenues $800.
C)Debit Encumbrances $780; Debit Fund balance $20; credit Estimated revenues $800.
D)Memorandum entry only.

Question

Quizplus · Accepted Answer

This entry reflects the adoption of the budget, with estimated revenues debited and appropriations credited. The additional $20 in revenue (revenue exceeding expenditures) is credited to the fund balance.

A Public School District Formally Adopted a Budget with Estimated