Chapter 1, Problem 1P

(Statement of Revenues and Expenditures—Worksheet) Hatcher Township prepares its annual General Fund budget on the cash basis and maintains its accounting records on the cash basis during the year. At the end of Hatcher Township’s 20X9 calendar year, you determine the following:

1. 1. Prepare a worksheet to derive a GAAP basis (including accruals) statement of revenues and expenditures for the Hatcher Township General Fund for the 20X9 fiscal year.
2. 2. Could the readers of the budgetary basis and GAAP basis statements get different impressions of the 20X9 operating results of the Hatcher Township General Fund? Explain.