The city of Jackson adopted the following General Fund budget for fiscal year 2014:
Estimated revenues:
Taxes $3,000,000
Intergovernmental revenues 1,000,000
Licenses and permits 400,000
Fines and forfeits 150,000
Miscellaneous revenues 100,000
Total estimated revenues $4,650,000
Appropriations:
General government $1,000,000
Public safety 2,000,000
Public works 950,000
Health and welfare 850,000
Miscellaneous 50,000
Total appropriations $4,850,000
Required:
a. Assuming that a city ordinance mandates a balanced budget, what must be the minimum amount in the Fund Balance-Unassigned account of the General Fund at the beginning of FY 2014? (Note: the city has no restricted, committed or assigned fund balances.)
b. Prepare the general journal entries to record the adopted budget at the beginning of FY 2014. Show entries in the subsidiary ledger accounts as well as the general ledger accounts.