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Exercise 3-3

Exercise 3-3 . Budget Journal Entries. Transaction #1. Enter budgeted revenue and appropriations amounts Use example on top of Page 101. Transaction #2. Order Supplies Since we are entering budgetary amounts, the $20 of supplies must be incorporated into the accounting records

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Exercise 3-3

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  1. Exercise 3-3 Budget Journal Entries

  2. Transaction #1 • Enter budgeted revenue and appropriations amounts • Use example on top of Page 101

  3. Transaction #2 • Order Supplies • Since we are entering budgetary amounts, the $20 of supplies must be incorporated into the accounting records • Follow the first example on Page 104

  4. Transaction #3 • Record this transaction as you learned in financial accounting

  5. Transaction #4 • This is transaction similar to Transaction #1

  6. Transaction #5 • This transaction requires two journal entries, one entry to reverse the encumbrance entry and a second entry to record the expenditure for the equipment. • Remember we are using fund accounting and thus in the second entry we should not show a debit to a capital asset but to ? • Note that the amounts in journal entry #1 and #2 will be different

  7. Transaction #6 • This transaction requires two journal entries and is similar to Transaction #5

  8. Transaction #7 Part a • Record the revenues earned

  9. Transaction #7 Part b • The closing entries will require three entries • #1 Reverse the budgeted revenue and appropriations amounts (Transaction #1) and close any balance to Fund Balance • #2 Close the Revenue Account to Fund Balance • #3 Close all expenditure accounts to fund balance

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