Question

The board of commissioners of the City of Hartmoore adopted a General Fund budget for the year ending June 30, 2017, that included revenues of $1,342,500, bond proceeds of $595,000, appropriations of $960,000, and operating transfers out of $532,500. If this budget is formally integrated into the accounting records, what journal entry is required at the beginning of the year

Answer 1

The Journal entry at the beginning of the year is as follows:

Estimated revenue A/c Dr. $1,342,500

Estimated other financing sources-Bonds proceeds A/c Dr. $595,000

To Appropriations control $960,000

To Appropriations-Other financing uses-operating transfer outs $532,500

To Budgetary fund Bal. $445,000

(To record entry at the beginning of the year)