Part 1: research the following statements and write a paper of 500


Part 1: Research the following statements and write a paper of 500 words on your findings:

* What are the key differences between a governmental unit and a commercial company?

* Discuss the following terms and how they are used during the budget process of a governmental unit:

    * Appropriations

    * Encumbrances

    * Expenditures

    * Budgetary fund balances

* Give examples for each of the above terms.

Part 2: Given the following information, create the journal entries required for each of the situations described:

Estimated revenues

Property taxes $1,250,000

Fines and forfeits 80,000

Intergovernmental 500,000

Total $1,830,000


General $300,000

Streets 50,000

Public safety 800,000

Total $ 1,150,000

1. Make the journal entry to record the adoption of the annual budget.

2. Make the journal entries necessary to record the following cash revenues that were received:

Property taxes $800,000

Fines and forfeits 73,000

Intergovernmental 300,000

Total $1,173,000

3. Purchase orders were issued for the following goods and services:

General $285,000

Streets 50,000

Public safety 670,000

Total $ 1,005,000

4. Purchase orders were fulfilled based upon the following estimated and actual costs:

Estimated Actual

General $285,000 $280,000

Streets 50,000 50,000

Public safety 670,000 660,000

Total $ 1,005,000 $ 990,000

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