Question

Assume a budget for City has been approved and the following information is available:

• Estimated inflow from revenue $900,000

• Estimated inflow from general long term debt $100,000

• Transfer from other funds $250,000

• Sales of fixed Assets $300,000

• Estimated outflows expenditures$1,200,000

• Transfer to other funds $ 370,000

Record the above events in a general journal

Answer 1

JOURNAL ENTRIES:

		Debit	Credit
1
	Dr. Estimated inflow from revenues	$900,000
	Dr. General long-term debts	$100,000
	Dr. Budget deficit	$200,000
	Cr. Estimated expenditures		$1,200,000
	(To record the estimate of budget)
2	Dr. Cash	$250,000
	Cr. Transfer in		$250,000
	(To record transfers of amount from other funds)
3	Dr. Cash	$300,000
	Cr. Fixed assets		$300,000
	(To record fixed assets sale)
4	Dr. Transfer out	$370,000
	Cr. Cash		$370,000
	(To record transfer of amount to other funds)