Reference no: EM132505734

Part 1: Research the following statements and write a paper of 500 words on your findings:

Question 1: What are the key differences between a governmental unit and a commercial company?

Question 1: Discuss the following terms and how they are used during the budget process of a governmental unit:

• Appropriations
• Encumbrances
• Expenditures
• Budgetary fund balances
• Give examples for each of the above terms.

Part 2: Given the following information, create the journal entries required for each of the situations described:

Estimated revenues

Property taxes                            $1,250,000

Fines and forfeits                              80,000

Intergovernmental                             500,000

Total                                         $1,830,000

Appropriations

General                                      $300,000

Streets                                        50,000

Public safety                                 800,000

Total                                         $ 1,150,000

Question 3: Make the journal entry to record the adoption of the annual budget.

Question 4: 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