The Murphy County Commissioners adopted the following General Fund budget for the 20X8 fiscal year: Murphy County
Question:
The Murphy County Commissioners adopted the following General Fund budget for the 20X8 fiscal year:
Murphy County
General Fund
Budget—20X8
Estimated Revenues:Â
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 8,000,000
Licenses and Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000
Intergovernmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
Charges for Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Fines and Forfeits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
 12,000,000
Appropriations:Â
General Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000
Public Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000
Highways and Streets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
Health and Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Culture and Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
 11,900,000
Excess of Estimated Revenues over Appropriations . . . . . . . . 100,000
Fund Balance—Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,400,000
Fund Balance—Ending (Anticipated) . . . . . . . . . . . . . . . . . . $ 1,500,000
The following events occurred during 20X8:
1. Purchase orders issued and contracts let were expected to cost:
General Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000
Public Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000
Highways and Streets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000
Health and Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500,000
Culture and Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200,000
2. The commissioners reviewed the budget during the year and (a) revised the estimate of Intergovernmental Revenues to $1,500,000 and reduced the Public Safety and Highways and Streets appropriations by $225,000 each to partially compensate for the anticipated decline in intergovernmental revenues, and (b) increased the Health and Sanitation appropriation by $70,000 because of costs incurred in connection with an unusual outbreak of Tasmanian flu.
3. Revenues (actual) for 20X8 were
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,150,000
Licenses and Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785,000
Intergovernmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,520,000
Charges for Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210,000
Fines and Forfeits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .395,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500,000
$ 11,560,000
4. Goods and services under purchase orders and contracts were received:
The remaining orders are still outstanding.
5. Other expenditures incurred were
General Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000
Public Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,560,000
Highways and Streets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,271,000
Health and Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485,000
Culture and Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391,000
 $6,452,000
Required
1. Set up general ledger T-accounts and also revenues and expenditures subsidiary ledgers like those in Illustrations 4-3 and 4-4.
2. Record the Murphy County 20X8 General Fund budget in the general ledger and subsidiary ledger accounts, keying these entries “B†(for budget). Then record the numbered transactions and events, keying these entries by thosenumbers.
Step by Step Answer:
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi