Question

The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2017: Beginning balances were: Cash, $93,000; Taxes Receivable, $189,500; Accounts Payable, $52,250; and Fund Balance, $230,250. The budget was passed. Estimated revenues amounted to $1,230,000 and appropriations totaled $1,227,400. All expenditures are

Answer 1

Estimated Revenue Control (Dr.) $1,230,000

Appropriation (Cr.) $1,227,400

Budgetary Fund (Cr.) $2,600

Tax receivable (Dr.) $189,500

Revenue (Cr.) $189,500

Cash (Dr.) $93,000

Tax receivable (Dr.) $96,500

Revenue (Cr.) $189,500

Expenditure Control (Dr.) $52,250

Accounts Payable (Cr.) $52,250

Accounts Payable (Dr.) $52,250

Cash (Cr.) $52,250

Step-by-step explanation:

Buffalo Falls earned and received tax revenue of $189,500. This will be reflected on debit side when journal entry is made and revenue is credited as per transaction. The company has now recorded a transaction of expenditure control of $52,250. These transaction are recorded by debiting the expenditure control account and crediting the accounts payable.