Budget Journal Entries Exercise 3-3 Budget Journal Entries

Transaction #1 Enter budgeted revenue and appropriations amounts Use example on top of Page 101

Transaction #2 Order Supplies Since we are entering budgetary amounts, the $20 of supplies must be incorporated into the accounting records Follow the first example on Page 104

Transaction #3 Record this transaction as you learned in financial accounting

Transaction #4 This is transaction similar to Transaction #1

Transaction #5 This transaction requires two journal entries, one entry to reverse the encumbrance entry and a second entry to record the expenditure for the equipment. Remember we are using fund accounting and thus in the second entry we should not show a debit to a capital asset but to ? Note that the amounts in journal entry #1 and #2 will be different

Transaction #6 This transaction requires two journal entries and is similar to Transaction #5

Transaction #7 Part a Record the revenues earned

Transaction #7 Part b The closing entries will require three entries #1 Reverse the budgeted revenue and appropriations amounts (Transaction #1) and close any balance to Fund Balance #2 Close the Revenue Account to Fund Balance #3 Close all expenditure accounts to fund balance