The journal entry to record the budget of a Special Revenue Fund would include:

Question

Quizplus · Accepted Answer

A Special Revenue Fund records its budget in the Estimated Revenues Control account. Therefore, the correct answer is a debit to Estimated Revenues Control. A debit to appropriations Control is incorrect because appropriations Control is used to record the budget for a General Fund. Special Revenue Funds are established to account for specific revenue sources that are legally restricted to expenditures for specific purposes, such as gasoline taxes used for road repairs or taxes used to finance a school system. Therefore, option D is also incorrect, as Special Revenue Funds do record budgets.

The Journal Entry to Record the Budget of a Special