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Problem 1: Recording the budgetary information in the general fund Use the information below to answer questions 1 and 2. In December, 2021, the Village of Northern Springs adopted the following general fund budget for the year ended December 31, 2022: Revenues: Taxes Permits, licenses, and fees Intergovernmental Total budgeted revenues Appropriations: General government Public safety Community development Culture and recreation Total appropriations $5,100,000 2,150,000 1,600,000 $8,850,000 During July, 2022, a group of citizens decided to hold a cultural event in the Village for the first time. The event required a permit, and the organizers of the event paid $35,000 to the Village to get the permit. Because the cultural event was not anticipated, the Village Council had to make the following adjustments to the original appropriations budget: Problem 1: Recording the budget for the general fund: 1. Original budget entry: $1,300,000 5,800,000 1,635,000 300,000 $9,035,000 o To provide safety to the citizens who attended the cultural event, the appropriation for salaries in the police department was increased $27,000; o To clean Village streets and sidewalks after the cultural event ended, the appropriation for contractual services in the general government was increased $2,000. The $2,000 will be paid to a private cleaning company. Required (explanations are not needed for journal entries): 1. Prepare the journal entry to record the original budget. 2. Prepare the journal entry to record the adjustments to the budget in July. 2. Budget adjustments: Debits Cre

Problem 1: Recording the budgetary information in the general fund Use the information below to answer questions 1 and 2. In December, 2021, the Village of Northern Springs adopted the following general fund budget for the year ended December 31, 2022: Revenues: Taxes Permits, licenses, and fees Intergovernmental Total budgeted revenues Appropriations: General government Public safety Community development Culture and recreation Total appropriations $5,100,000 2,150,000 1,600,000 $8,850,000 During July, 2022, a group of citizens decided to hold a cultural event in the Village for the first time. The event required a permit, and the organizers of the event paid $35,000 to the Village to get the permit. Because the cultural event was not anticipated, the Village Council had to make the following adjustments to the original appropriations budget: Problem 1: Recording the budget for the general fund: 1. Original budget entry: $1,300,000 5,800,000 1,635,000 300,000 $9,035,000 o To provide safety to the citizens who attended the cultural event, the appropriation for salaries in the police department was increased $27,000; o To clean Village streets and sidewalks after the cultural event ended, the appropriation for contractual services in the general government was increased $2,000. The $2,000 will be paid to a private cleaning company. Required (explanations are not needed for journal entries): 1. Prepare the journal entry to record the original budget. 2. Prepare the journal entry to record the adjustments to the budget in July. 2. Budget adjustments: Debits Cre

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting Problem 1: Recording the budgetary information in the general fund Use the information below to answer questions 1 and 2. In December, 2021, the Village of Northern Springs adopted the following general fund budget for the year ended December 31, 2022: Revenues: Taxes Permits, licenses, and fees Intergovernmental Total budgeted revenues Appropriations: General government Public safety Community development Culture and recreation. Total appropriations $5,100,000 2,150,000 1,600,000 $8,850,000 Problem 1: Recording the budget for the general fund: 1. Original budget entry: $1,300,000 5,800,000 During July, 2022, a group of citizens decided to hold a cultural event in the Village for the first time. The event required a permit, and the organizers of the event paid $35,000 to the Village to get the permit. Because the cultural event was not anticipated, the Village Council had to make the following adjustments to the original appropriations budget: 2. Budget adjustments: 1,635,000 300,000 $9,035,000 o To provide safety to the citizens who attended the cultural event, the appropriation for salaries in the police department was increased $27,000; o To clean Village streets and sidewalks after the cultural event ended, the appropriation for contractual services in the general government was increased $2,000. The $2,000 will be paid to a private cleaning company. Required (explanations are not needed for journal entries): 1. Prepare the journal entry to record the original budget. 2. Prepare the journal entry to record the adjustments to the budget in July. Debits Credits
Transcribed Image Text:Accounting Problem 1: Recording the budgetary information in the general fund Use the information below to answer questions 1 and 2. In December, 2021, the Village of Northern Springs adopted the following general fund budget for the year ended December 31, 2022: Revenues: Taxes Permits, licenses, and fees Intergovernmental Total budgeted revenues Appropriations: General government Public safety Community development Culture and recreation. Total appropriations $5,100,000 2,150,000 1,600,000 $8,850,000 Problem 1: Recording the budget for the general fund: 1. Original budget entry: $1,300,000 5,800,000 During July, 2022, a group of citizens decided to hold a cultural event in the Village for the first time. The event required a permit, and the organizers of the event paid $35,000 to the Village to get the permit. Because the cultural event was not anticipated, the Village Council had to make the following adjustments to the original appropriations budget: 2. Budget adjustments: 1,635,000 300,000 $9,035,000 o To provide safety to the citizens who attended the cultural event, the appropriation for salaries in the police department was increased $27,000; o To clean Village streets and sidewalks after the cultural event ended, the appropriation for contractual services in the general government was increased $2,000. The $2,000 will be paid to a private cleaning company. Required (explanations are not needed for journal entries): 1. Prepare the journal entry to record the original budget. 2. Prepare the journal entry to record the adjustments to the budget in July. Debits Credits
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