ACCT 420 UNIT 2 IP

ACCT

UNIT 2 IP

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

Expenditure

Budgetary fund balances

Give examples of each of the above terms.

Part 2: Gien the following information, create the journa entries required for each of the situations described:

Estimated revenues 
Property taxes$1,250,000
Fines and foreits80,000
Intergovernmental500,000
Total$1,830,000
Appropriations 
General$300,000
Streets50,000
Public Safety800,000
Total$1,150,000

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

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

Property Taxes$800,000
Fines and forfeits73,000
Intergovernmental300,000
Total$1,173,000

Purchase orders were issued for the following goods and services:

General$285,000
Streets50,000
Public Safety670,000
Total$1,005,000

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

 EstimatedActual
General$285,000$280,000
Streets50,00050,000
Public Safety670,000660,000
Total$1,005,000$990,000