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Question - Assume that the City of Peony maintains its books and records in a manner that facilitates preparation of the fund financial statements. The city engaged in the following transactions related to its general fund during the current fiscal year. The city formally integrates the budget into the accounting records. The city does not maintain an inventory of supplies. All amounts are in thousands.
REQUIRED - Prepare, in summary form, the appropriate journal entries.
(a) The city council approved a budget with revenues estimated to be $800 and expenditures of $785.
(b) The city ordered supplies at an estimated cost of $25 and equipment at an estimated cost of $20.
(c) The city incurred salaries and other operating expenses during the year totaling $730. The city paid for these items in cash.
(d) The city received the supplies at an actual cost of $23.
(e) The city collected revenues of $795.
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