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The city of .Milton has an annual budget cycle that begins on July 1 and ends on June 30. At the beginning of each budget year, an annual budget is established for each derailment. The annual budget is divided equally among the 12 months to provide a constant monthly italic budget. On June 30, all unspent budgeted monies for the budget year from the various city departments must be "returned" to the General Fund. Thus, if department heads tail to use the It budget by year-end, they will lose it. A budget analyst prepared a chart of the difference between the monthly actual and budgeted amounts for all departments in a recent fiscal year. The chart wav as follows:
Write a memo to Stacy Poindexter, the city manager, interpreting the chart and suggesting improvements to the budgeting system.
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Financial & Managerial Accounting
- The general ledger of the County of Konstantin contains the following selected account balances: $91400 $35600 $16500 $5700 Appropriations Outstanding Encumbrances Expenditures Vouchers Payable Konstantin wants to order additional goods and services before the fiscal year end. What is the unencumbered balance (i.e., the remaining authority) of the budget that may be expended by Konstantin? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.arrow_forwardTri-County Social Service Agency is a not-for-profit organization in the Midwest. Use the following information to complete the cash budget for the year ending December 31. The Board of Trustees requires that Tri-County maintain a minimum cash balance of $8,000. If cash is short, the agency may borrow from an endowment fund the amount required to maintain the $8,000 minimum. It is anticipated that the year will begin with an $11,000 cash balance. Contract revenue is received evenly during the year. Mental health income is expected to grow by $5,000 in the second and third quarters; no change is expected in the fourth quarter. Required: 2. Complete the cash budget for each quarter and the year as a whole. 3. Determine the amount that the agency will owe the endowment fund at year-end.arrow_forwardPark City uses encumbrance accounting and formally integrates its budget into the general fund's accounting records. For the year ending July 31, Year 1, the following budget was adopted: Estimated revenues $30,000,000 Appropriations $27,000,000 Estimated transfer to debt service fund $900,000 Park's budgetary fund balance is a $3,000,000 credit balance $3,000,000 debit balance $2,100,000 credit balance O $2,1000,000 debit balancearrow_forward
- Prepare journal entries in general journal format to record the following transactions for the City of Dallas General Fund (subsidiary detail may be omitted) 1. The budget prepared for the fiscal year included total estimated revenues of $4,693,000, appropriations of $4,686,000 and estimated other financing uses of $225,000. 2. Purchase orders in the amount of $451,000 were mailed to vendors. 3. The current year’s tax levy of $4,005,000 was recorded; uncollectible taxes were estimated to be 2% of the tax levy. 4. Collections of delinquent taxes from prior years’ levies totaled $82,700; collections of the current year’s levy totaled $3,524,900. 5. Invoices were received and approved for payment for items ordered in documents recorded as encumbrances in transaction (#2) of this problem. The estimated liability for the related items was $351,200. Actual invoices were $353,500. 6. Revenue other than taxes collected during the year consisted of licenses and permits, $177,600;…arrow_forwardThe General Fund for Nisland has the following budget for the current year: Estimated Revenues Appropriations Estimated other financing sources Estimated other financing uses During the year, the actual results were: Revenues Expenditures Other financing sources Other financing uses Required: Prepare the Closing Entries for Nisland. $4,500,000 $5,200,000 $800,000 $75,000 $4,300,000 $5,150,000 $850,000 $70,000arrow_forwardGarden City had the following accounts approved at the beginning of 2021. Estimated Revenues: $8 million Estimated Other Financial Uses $2 million Appropriations $9 million Estimated Other Financial Sources $4 million What budgetary amount of fund balance Garden City will report in its budget summary? O a. Debit $1 million. O b. Credit $1 million. O c. Debit $3 million. O d. Credit $3 million.arrow_forward
- "The City of Lakeview adopts its budget on a basis of accounting that permits outstanding purchase commitments to be charged against the budget in the year that the goods are ordered instead of in the year they are received. During the year the city ordered and received $4,000 of supplies (of which $3,000 had been paid and $1,000 was unpaid) and had $500 of outstanding purchase commitments for supplies at year-end. In the budget-to-actual comparison, the expenditures for supplies would be: ""$3,000" "$3,500" "$4,000 " "$4,500"arrow_forwardThe board of commissioners of Perry City approved the city budget for the year starting July 1, 2019, which indicated estimated revenue of $1,000,000 and appropriations of $900,000. When the city CLOSES OUT the budget at the end of the fiscal year, the entry would include: O A) a debit to Budgetary Fund Balance - Unassigned in the amount of $100,000. B) a credit to Budgetary Fund Balance – Unassigned in the amount of $100,000. C) a debit to Appropriations in the amount of $900,000. D) a debit to Estimated Revenues in the amount of $1,000,000. E) both A. and C.arrow_forwardScenario and General Fund budgetary journal entries The scenario: Croton City maintains four governmental-type funds: a General Fund, a Library Special Revenue Fund, a Capital Projects Fund, and a Debt Service Fund. Croton City started its calendar year 2019 with the following General Fund balances (all numbers are in thousands of dollars). Debits Credits Cash $1,800 Property taxes receivable 800 Salaries payable $700 Deferred property tax revenues 300 Unassigned fund balance - 1,600 Totals $2,600 $2,600 Croton has adopted the following budgetary and accounting policies: Encumbrance accounting is used only for the acquisition of supplies and for the award of contracts for construction and construction-related activities. Open encumbrances lapse at the end of the year, but are considered in developing the next year's budget. Because final income tax returns are not required to be filed until April 15 of the year following the end of a calendar…arrow_forward
- 4. City of Atwater wants to prepare closing entries at the end of a fiscal year for budgetary and operating statement control accounts in the general ledger of the General Fund. Following balance are belong to the City. Appropriations, $7,824,000%3; Financing Uses, $2,766,000; Estimated Revenues, $7,798,000; Encumbrances,$0; Expenditures, $5,900,0003; Uses, $2,770,000; Revenues, $8,980,000. Required Show in general journal form the entry needed to close all of the preceding accounts that should be closed as of the end of the fiscal year. Estimated Other Other Financingarrow_forwardThe General Fund for Nisland has the following budget for the current year: Estimated Revenues$4,500,000 Appropriations$5,200,000 Estimated other financing sources$800,000 Estimated other financing uses$75,000 During the year, the actual results were: Revenues$4,300,000 Expenditures$5,150,000 Other financing sources$850,000 Other financing uses$70,000 Required: Prepare the Closing Entries for Nisland. Does it need a record for budgetary / encumbrances first and then the actual cost? DO NOT GIVE SOLUTION IN IMAGE FORMATarrow_forwardEdwards City has the following information for its general fund for the upcoming fiscal year. Which of the following would be the appropriate effect to budgetary fund balance when the budget is recorded? Estimated revenue Appropriations Property tax 3,500,000 Salaries 2,690,000 Sales tax 490,000 Capital items 1,320,000 Other 50,000 Other 15,000 None of these Credit budgetary fund balance $30,000 Credit budgetary fund balance $15,000 Debit budgetary fund balance $30,000arrow_forward
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub