Recording Adopted Budget. The City of Marion adopted the following General Fund budget for fiscal year 2011:

Estimated revenues:

Taxes................$3,000,000

Intergovernmental revenues........ 1,000,000

Licenses and permits.......... 400,000

Fines and forfeits............. 150,000

Miscellaneous revenues......... 100,000

Total estimated revenues........$4,650,000

Appropriations ions:

General government...........$ 950.000

Public safety.............2,000,000

Public works............. 950,000

Health and welfare.......... 850,000

Miscellaneous............ 50,000

Total appropriations........... $4,800,000

Required

a. Assuming that a city ordinance mandates a balanced budget, what must be the minimum amount in the Fund Balance account of the General Fund at the beginning of FY 2011?

b. Prepare the general journal entries to record the adopted budget at the beginning of FY 2011. Show entries in the subsidiary ledger accounts as well as the general ledger accounts.