31. houghton county provided the following partial list of activities related to its general administrative…

31. houghton county provided the following partial list of activities related to its general administrative operations: - budget approved at the beginning of the fiscal period, july 1. appropriations 2,000,000, estimated revenues 2,200,000, estimated other financing sources 200,000. - on october 1, durban county ordered three vehicles to be used by the county administration. estimated costs $217,000. - during the fiscal period, additional purchase orders were approved and entered totaling $810,000. - durban county received the three vehicles ordered on october 1. the invoice totaled $225,000. - at the end of the fiscal period, open encumbrances totaled $79,000. open encumbrances are allowed to be filled in the next fiscal period. what would recording the initial budget entry in the general fund result in? a. debit to budgetary fund balance for $400,000 b. credit to budgetary fund balance for $400,000 c. debit to budgetary fund balance for $300,000 d. credit to budgetary fund balance for $300,000

31. houghton county provided the following partial list of activities related to its general administrative operations: - budget approved at the beginning of the fiscal period, july 1. appropriations 2,000,000, estimated revenues 2,200,000, estimated other financing sources 200,000. - on october 1, durban county ordered three vehicles to be used by the county administration. estimated costs $217,000. - during the fiscal period, additional purchase orders were approved and entered totaling $810,000. - durban county received the three vehicles ordered on october 1. the invoice totaled $225,000. - at the end of the fiscal period, open encumbrances totaled $79,000. open encumbrances are allowed to be filled in the next fiscal period. what would recording the initial budget entry in the general fund result in? a. debit to budgetary fund balance for $400,000 b. credit to budgetary fund balance for $400,000 c. debit to budgetary fund balance for $300,000 d. credit to budgetary fund balance for $300,000

Answer

Explanation:

Step1: Calculate the budgeted surplus/deficit

Budgeted appropriations = $2,000,000$. Estimated revenues = $2,200,000$ and estimated other financing sources = $200,000$. Total estimated resources = $2,200,000 + 200,000=2,400,000$. The difference between total estimated resources and appropriations is $2,400,000 - 2,000,000 = 400,000$.

Step2: Determine the budget - entry impact on Budgetary Fund Balance

When recording the initial budget in the General Fund, if estimated resources exceed appropriations, the Budgetary Fund Balance is credited. A credit to Budgetary Fund Balance indicates an expected surplus in the budget.

Answer:

B. Credit to Budgetary Fund Balance for $400,000$