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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:
* Budgetary 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:
Property taxes $1,250,000
Fines and forfeits 80,000
Public safety 800,000
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 $800,000
Fines and forfeits 73,000
3. Purchase orders were issued for the following goods and services:
Public safety 670,000
Total $ 1,005,000
4. Purchase orders were fulfilled based upon the following estimated and actual costs:
General $285,000 $280,000
Streets 50,000 50,000
Public safety 670,000 660,000
Total $ 1,005,000 $ 990,000
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