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 foreits 80,000
Intergovernmental 500,000
Total $1,830,000
Appropriations  
General $300,000
Streets 50,000
Public Safety 800,000
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 forfeits 73,000
Intergovernmental 300,000
Total $1,173,000

Purchase orders were issued for the following goods and services:

General $285,000
Streets 50,000
Public Safety 670,000
Total $1,005,000

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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Plagiarism Free!

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