A certain government passed its budget for the fiscal year ended December 31,2015. Estimated Revenues amounted to $13,000,000; Appropriations amounted to $12,000,000; Estimated Other Financing Uses amounted to $700,000; and Estimated Other Financing Sources amounted to $200,000.In the budgetary entry (combining entry):

Question

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The budgetary balance is the difference between the estimated revenues and the appropriations. In this case, the estimated revenues of $13,000,000 exceed the appropriations of $12,000,000 by $1,000,000. Therefore, the Budgetary Fund Balance should be credited for $1,000,000. However, there are also estimated other financing uses of $700,000 and estimated other financing sources of $200,000, which result in a net decrease in the Budgetary Fund Balance of $500,000 ($700,000 - $200,000). Therefore, the Budgetary Fund Balance should be credited for $500,000.

A Certain Government Passed Its Budget for the Fiscal Year