What are the key differences between a governmental unit and a commercial company? Discuss the following terms and how they are…
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 balancesGive 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$300,000Streets50,000Public safety800,000 Total$ 1,150,000Make the journal entry to record the adoption of the annual budget.Make the journal entries necessary to record the following cash revenues that were received:Property taxes0,000Fines and forfeits73,000Intergovernmental 300,000 Total$1,173,000Purchase orders were issued for the following goods and services:General$285,000Streets 50,000Public safety 670,000 Total$ 1,005,000Purchase orders were fulfilled based upon the following estimated and actual costs: EstimatedActualGeneral$285,000$280,000Streets 50,00050,000Public safety 670,000660,000 Total$ 1,005,000$ 990,000
