The City of Aurora increased its revenue budget by $75,000 and the appropriation for the Public Works Department was increased by $100,000. What is the journal entry to record this event in the General Fund?

Question

Quizplus · Accepted Answer

The journal entry to record the increase in revenue and appropriation would be to credit Estimated Revenues Control for $75,000 and debit Appropriations Control for $100,000 to increase the budget for the Public Works Department. A debit to Budgetary Fund Balance for $25,000 is needed to balance the entry. Therefore, option C is the correct answer. Option A is incorrect as it only debits the fund balance for $25,000 when the total appropriations increase is $100,000. Option B is incorrect as it does not include a debit to Budgetary Fund Balance. Option D is incorrect as it only records the increase in revenues and not the increase in appropriation.

The City of Aurora Increased Its Revenue Budget by $75,000