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Question :
Recording Budget and Ending Fund Balances. The following information is provided about the Town of York's General Fund operating statement and budgetary accounts for the fiscal year ended September 30. (Note: The town has no restricted, committed, or assigned fund balances.)
Estimated revenues
532,150,000
Revenues
32,190,000
Appropriations
32,175,000
Expenditures
32,185,000
Fund Balance-Unassigned (beginning of the fiscal year)
500,000
Required
a. Prepare the journal entry to record the budget.
b. Did the Town of York engage in imprudent budgeting practice by authorizing a greater amount of expenditures than revenues estimated for the year, or potentially violate town or state balanced-budget laws?
c. Calculate the end-of-year balance for the Fund Balance-Unassigned that would be reported on the town's balance sheet prepared as of September 30. Show all necessary work.
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