At the beginning of the year, the Cortlandt City Council adopts a budget calling for estimated revenues of $480,000 and appropriations of $470,000. When the City prepares its journal entry to record the budget

Question

Quizplus · Accepted Answer

When budgetary appropriations are less than estimated annual revenues, it means that when the budgetary journal entry is recorded at the beginning of the year, budgetary fund balance is expected to increase. An increase in fund balance must be a credit.

At the Beginning of the Year, the Cortlandt City Council