appropriations budget from the council was as follow neral government rks and recreation nitation reets and sidewalks $395,000 110,000 90,000 160,000 pril, heavy spring rains caused some flooding near the aged shops had to shut down. The council adopted a ced the estimated revenues from business licenses t General Fund began the year with a balance of $49.0
appropriations budget from the council was as follow neral government rks and recreation nitation reets and sidewalks $395,000 110,000 90,000 160,000 pril, heavy spring rains caused some flooding near the aged shops had to shut down. The council adopted a ced the estimated revenues from business licenses t General Fund began the year with a balance of $49.0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The town council of Riverside estimated revenues for 2020 to be $685,000 from property taxes and $165,000 from business licenses.
The appropriations budget from the council was as follows:
General government
Parks and recreation
Sanitation
Streets and sidewalks
In April, heavy spring rains caused some flooding near the river. As a result, a picnic area at River's Edge Park was ruined and several
damaged shops had to shut down. The council adopted an upward revision of $50,000 for the parks and recreation budget and
reduced the estimated revenues from business licenses by $30,000.
The General Fund began the year with a balance of $49,000. During the year, tax collections totaled $687,500 and revenues from
business licenses were $124,000. Expenditures were $365,000 for general government, $160,500 for parks and recreation, $91,600
for sanitation, and $157,333 for streets and sidewalks. There are no outstanding encumbrances at year-end.
Required:
Prepare a budgetary comparison schedule for the General Fund for 2020. (Negative variance amounts should be indicated by a
minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
Revenues:
$395,000
110,000
90,000
160,000
Property Taxes
Business Licenses
Total Revenues
Expenditures and Encumbrances:
General Government
Parks and Recreation
Sanitation
Streets and Sidewalks
Answer is complete but not entirely correct.
TOWN OF RIVERSIDE
Budgetary Comparison Schedule
General Fund
For the Year Ended December 31, 2020
Total Expenditures and Encumbrances
Excess (Deficiency) of Revenues Over Expenditures and Encumbrances
Fund Balance, Beginning
Fund Balance, Ending
› › › ›
Budgeted Amounts
Original
$ 685,000 S
165,000
850,000
395,000
110,000
90,000
160,000
0
755,000
49,000 X
144,000
$ 193,000
Final
oooo
0X S 687,500
124,000
0x
0
0
Actual
Amounts
(Budgetary
Basis)
0x
0x
0x
0x
811,500
365,000
160,500
91,600
157,333
0
0
0x
0x
774,433
49,000 X
86,067
0 S 135,067
0
Variance
with Final
Budget
Positive
(Negative)
S
2,500
(110,000) X
(107,500)
(30,000) X
(500)
(1,600) ✔
(2,667) X
0
(34,767)
* ›› * >
0x
22,067
22,067
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