ACCT420-1304B-01 Government & Not for Profit Accounting

Part 1: Research the following statements and write a paper of 500 words on your findings:

• What are the key differences between a governmental unit and a commercial company?
• Discuss the following terms and how they are used during the budget process of a governmental unit:AppropriationsEncumbrancesExpendituresBudgetary fund balances
• Give examples for each of the above terms.

Part 2: Given the following information, create the journal entries required for each of the situations described:

Estimated revenues Property taxes$1,250,000Fines and forfeits80,000Intergovernmental500,000  Total$1,830,000  Appropriations General$300,000Streets50,000Public safety800,000  Total$ 1,150,000

1. Make the journal entry to record the adoption of the annual budget.
2. Make the journal entries necessary to record the following cash revenues that were received:

Property taxes$800,000Fines and forfeits73,000Intergovernmental 300,000  Total$1,173,000

1. Purchase orders were issued for the following goods and services:

General$285,000Streets 50,000Public safety 670,000  Total$ 1,005,000

1. Purchase orders were fulfilled based upon the following estimated and actual costs:

 EstimatedActualGeneral$285,000$280,000Streets 50,00050,000Public safety 670,000660,000