Presented here are several transactions and events of the General Fund of Johnson County. All transactions and events relate to calendar year 2014.
1. Estimated revenues from the following sources were legally budgeted. Sales taxes $6,000,000 Fines and forfeits $2,000,000 Licenses and permits $1,750,000 Intergovernmental revenues $350,000 Total $10,100,000
2. Appropriations for the following functions were legally budgeted. General government $2,100,000 Public safety $3,890,000 Culture and recreation $700,000 Health and welfare $3,000,000 Total $9,690,000
3. During the year, revenues were received in cash from the following sources: Sales taxes $5,955,000 Fines and forfeits $1,990,000 Licenses and permits $1,740,000 Intergovernmental revenues $385,000 Total $10,070,000
4. During the year, contracts and purchase orders were issued as follows: General government $450,000 Public safety $800,000 Culture and recreation $280,000 Health and welfare $500,000 Total $2,030,000
5. Goods and services (these are a portion of the total ordered in transaction 4) were received, as follows: Estimated Actual General government $450,000 $452,000 Public safety $500,000 $510,000 Culture and recreation $275,000 $276,000 Health and welfare $500,000 $500,000 Total $1,725,000 $1,738,000
6. A budget revision was approved by the County Commission. Estimated revenues for intergovernmental revenues were increased by $35,000. Appropriations for general government were increased by $100,000.
7. Vouchers were issued for items not previously encumbered, primarily personal services, in the following amounts: General government $1,747,000 Public safety $3,080,000 Culture and recreation $413,000 Health and welfare $2,500,000 Total $7,740,000
a. Record the transactions in general journal form. Include subsidiary accounts as illustrated in this chapter.
b. Open budgetary, revenue, expenditure, and encumbrance general ledger control accounts and post the transactions. You may use T-accounts.
c. Open Revenue and Appropriations, Expenditures, and Encumbrances subsidiary ledgers. Post the transactions. Prove that the control account balances agree with the related subsidiary ledger accounts.
d. Assume a beginning Fund Balance of $350,000. Prepare a budgetary comparison schedule for the General Fund. Include encumbrances with expenditures. Use Illustration 3-8 as an example.
e. Assuming that encumbered appropriation do not lapse at the end of the budget year, how much of the appropriations, by function, did lapse at the end of 2014? Show computations in good form.