Reference no: EM131794488

Problem

Both budgeted and actual revenues and expenditures are closed to the fund balance. 

The budgeted and actual revenues and expenditures of Seaside Township for a recent year (in millions) were as presented in the schedule that follows.

1. Prepare journal entries to record the budget.

2. Prepare journal entries to record the actual revenues and expenditures. Assume all transactions resulted in increases or decreases in cash.

3. Prepare journal entries to close the accounts.

4. Determine the net change in fund balance. Does it equal the net change in actual revenues and expenditures?

                                         budget        actual

revenues

property taxes                       7.5           7.6

sales taxes                            2.1            2.4

other revenues                      1.6            1.5

total revenues                       11.2          11.5

expenditures

wages and salaries                 6.2         6.1

supplies                                3.1          3.0

other expenditures                1.3          1.2

total expenditures                 10.6        10.3

increase in fund balance         0.6         1.2