The budget for Muncie, IN, population 2,758, was passed for fiscal year 2020. Due to additional police
Question:
The budget for Muncie, IN, population 2,758, was passed for fiscal year 2020. Due to additional police and healthcare related emergency due to COVID-19, the mayor and city council revised the budget as follows: Sales tax estimates were reduced by $39,000; Federal grants of $120,000 were expected to be received due to the virus (this was not in the original budget); Appropriations for public safety increased $30,000; and, Appropriations for public health increased $80,000.
39. In the General Fund, the journal entry to record the budget adjustment for the reduction in estimated sales taxes and the anticipated federal grant would include a:
A. Credit to Estimated Revenues, $39,000.
B. Debit to Other Financing Sources, $120,000.
C. Credit to Appropriations, $80,000.
D. Debit to Estimated Other Financing Uses, $120,000.
40. In the General Fund, the journal entry to record the budget adjustment for the increase in appropriations from expected increased funding for public safety and public health would include a:
A. Debit to Appropriations, $110,000.
B. Credit to Estimated Other Financing Sources, $120,000.
C. Debit to Estimated Revenues, $39,000.
D. Credit to Appropriations, $110,000.
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik