Recording Adopted Budget. The City of Marion adopted the following General Fund budget for fiscal year 2011:
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……………………$4,650,000
Appropriations ions:
General government………………………..$ XXXXXXXXXX
Public safety……………………………….2,000,000
Public works………………………………. 950,000
Health and welfare………………………… 850,000
Miscellaneous……………………………… 50,000
Total appropriations……………………….. $4,800,000
Required
a. Assuming that a city ordinance mandates a balanced budget, what must be the minimum amount in the Fund Balance account of the General Fund at the beginning of FY 2011?
b. Prepare the general journal entries to record the adopted budget at the beginning of FY 2011. Show entries in the subsidiary ledger accounts as well as the general ledger accounts.