Quiz 4: Accounting for the General and Special Revenue Funds

Business

The solution to this and the first exercise of Chapters 1 through 9 will differ from student to student, assuming each has a different CAFR.

part A. VILLAGE OF SEASIDE PINES - GENERAL FUND General Ledger img part B. VILLAGE OF SEASIDE PINES - GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 2012 img part C. img img

Budgeting: A plan which is created by a company in order to determine how its resources are to be used to achieve the targeted profits and growth of the company is called budget. The process of creating such a plan is known as budgeting. General fund: General fund is a fund which is used for receipts and payments that do not connect with another fund. It records the amount of appropriation which is appropriated by law for the general report of government activities and other expenditures. Special revenue fund: A special revenue fund is a fund which is used for collection of money for a specific project established by a government. It provides an accountability and transparency to taxpayers their tax dollars will go towards an intended purpose. Pass the journal entries to record the transactions of the budget: 1. Pass the journal entry to records the budget: img Estimated revenue control is debited because the revenue control increase results increase in expenditure and increase in expenditure is always debited as per the debit and credit rules. Appropriation control is credited because appropriation control results increase the income and increase the income is always credited. 2. Pass the journal entry to record the transaction of loan received from general fund: img Cash is debited because cash received to increase the assets and increase the assets is always debited as per the debit and credit rules. The general fund is credited because general fund results increase the fund and increase the funds is always credited. 3. Pass the journal entry to record the transaction of expenditure: img Expenditure control is debited because expenditure increases results increase the expenditure and increase the expenditure is always debited as per the debit and credit rule. Cash is credited because the decrease in cash results decrease the assets and decrease the assets is always credited. Accrued wages payable is credited because wages payable results increase the liability and increase the liability is always credited. 4. Pass the journal entry to record the transaction of cash received from the grant: img Cash is debited because cash received to increase the assets and increase the assets is always debited as per the debit and credit rules. Grant received is credited received grant results increases the income and increase the income is always credited. 5. Pass the journal entry to record the transactions of closing entries: a. img Appropriation control is debited because the Appropriation control increase results increase in expenditure and increase in expenditure is always debited as per the debit and credit rules. Estimated revenue control is credited because revenue control results increase the income and increase the income is always credited. b. img Estimated revenue control is debited because the revenue control increase results increase in expenditure and increase in expenditure is always debited as per the debit and credit rules. Appropriation control is credited because appropriation control results increase the income and increase the income is always credited.