The County Commission of Seminole County adopted its General Fund budget for the year ending June 30, comprising estimated revenues of $13,200,000 and appropriations of $12,900,000. Seminole County utilizes the budgetary accounts required by GASB standards. The journal entry to record budgeted appropriations will include:

Question

Quizplus · Accepted Answer

Appropriations are the legal authorization for spending, so the journal entry to record budgeted appropriations will include a credit to the Appropriations account for the authorized amount of $12,900,000. Option B is incorrect because encumbrances are recorded when a purchase order is issued to reserve funds for a specific purchase, not when the budget is adopted. Option C is incorrect because Estimated Expenditures is not a budgetary account required by GASB standards. Option D is incorrect because Budgetary Fund Balance is a control account and not affected by budgeted appropriations.

The County Commission of Seminole County Adopted Its General Fund