Question

The town council of Riverside estimated revenues for 2017 to be $693,000 from property taxes and $178,000 from business licenses. The appropriations budget from the council was as follows:

General government	$	381,000
Parks and recreation		117,000
Sanitation		96,000
Streets and sidewalks		168,000

In April, heavy spring rains caused some flooding near the river. As a result, a picnic area at River’s Edge Park was ruined and several damaged shops had to shut down. The council adopted an upward revision of $39,000 for the parks and recreation budget and reduced the estimated revenues from business licenses by $21,000.

The General Fund began the year with a balance of $61,000. During the year, tax collections totaled $700,500 and revenues from business licenses were $156,000. Expenditures were $375,000 for general government, $141,500 for parks and recreation, $102,600 for sanitation, and $163,333 for streets and sidewalks. There are no outstanding encumbrances at year-end.

Required:
Prepare a budgetary comparison schedule for the General Fund for 2017. (Negative variance amounts should be indicated by a minus sign.)

Answer 1