Reference no: EM13834742

1. The data presented below were taken from the books and records of the Village of Maxieville. All amounts are in millions. The village encumbers all outlays. As is evident from the data, some goods and services that were ordered and encumbered have not yet been received. City regulations require that all appropriations lapse at year - end.1. Prepare summary entries to record

Village of Maxieville

	Amounts Received
	Estimated Appropriated	Amounts Encumbered	Estimated Cost	Actuals
Revenue
Property Taxes	S23,700			$23,400
Sales Taxes	$11,700			$10,800
Licenses	$900			$600
Other	$2,100			$1,200
Total revenues	$38,400			$36,000
Expenditures/Appropriations
General government	$9,000	$7,800	$7,200	$8,400
Public safety	$18,000	$17,700	$15,000	$14,700
Recreciation	$3,600	$3,600	$2,400	$2,700
Health and sanitation	S6,900	S6,600	S6,600	$6,300
Total Expenditures/Appropriations	$37,500	S35,700	S31,200	S32,100
Excess of estimated revenues over appropriations	$900
Beginning unassigned fund balance	$3,600
Estimated unassigned ending fund balance	$4,500

A. The budget

B. the encumbrance of the goods and services

C. the receipt of the goods and services. All invoices were paid in cash.

D. the actual revenues (all cash receipts)

2. Prepare summary entries to close the accounts

3. What would be the year-end?

A. fund balance (unassigned)

B. Reserve for encumbrance balance (irrespective of how classi?ed)

4. Prepare a schedule in which you compare budgeted to actual revenues and expenditures.

5. A citizen reviews the budget to actual schedule that you have prepared. She comments on the rather substantial favorable variance between budgeted and actual expenditures and questions why the government did not spend the full amount of money that it appropriated. Brie?y explain to her the nature of the variance.