1. Budget Journal Entries
Exercise 3-3
Budget Journal Entries

2. Transaction #1 Enter budgeted revenue and appropriations amounts
Use example on top of Page 101

3. Transaction #2 Order Supplies
Since we are entering budgetary amounts, the $20 of supplies must be incorporated into the accounting records
Follow the first example on Page 104

4. Transaction #3
Record this transaction as you learned in financial accounting

5. Transaction #4
This is transaction similar to Transaction #1

6. Transaction #5
This transaction requires two journal entries, one entry to reverse the encumbrance entry and a second entry to record the expenditure for the equipment.
Remember we are using fund accounting and thus in the second entry we should not show a debit to a capital asset but to ?
Note that the amounts in journal entry #1 and #2 will be different

7. Transaction #6
This transaction requires two journal entries and is similar to Transaction #5

8. Transaction #7 Part a
Record the revenues earned

9. Transaction #7 Part b The closing entries will require three entries
#1 Reverse the budgeted revenue and appropriations amounts (Transaction #1) and close any balance to Fund Balance
#2 Close the Revenue Account to Fund Balance
#3 Close all expenditure accounts to fund balance