H | ACCT321 | As1 | initially record the budget and record the budget revision..

Answer all Questions (Total Marks 5)

1. Identify the governmental, business and fiduciary type of activities carried on by the government of KSA. Give examples of the organizations in KSA. (Mark 1)

1. The council of the Town of Fursan approved the 2019 budget as follows: (Mark 1)

Budgeted 2019 revenues from:

Property taxes $4,000,000

Sales taxes $1,000,000

Appropriations for 2019:

Salaries $3,600,000

Materials $1,000,000

Equipment $100,000

During 2019, the town’s mayor presented the council with a budget revision to increase the amount of appropriation for salaries by $50,000. The council approved this budget revision.

Required:

a. Prepare the general journal entry necessary to initially record the budget.

b. Prepare the general journal entry necessary to record the budget revision.

1. Prepare entries to record the following transactions and events related to Max County’s tax revenues for the year beginning January 1, 2013: (Mark 1)

a. To raise property tax revenue of $750,000, the County bills its property owners a total of $752,000, providing $2,000 for uncollectible and refundable taxes.

b. During the year, taxpayers pay a total of $650,000 in property taxes.

c. Edam declares bankruptcy, owing the County $2,000 in property taxes. The County writes off the unpaid amount as uncollectible.

d. The state collects sales taxes on behalf of Max County. It sends the County $150,000 for sales taxes collected during the year.

e. At year-end, the County declares all unpaid property taxes to be delinquent

1. From the information below prepare Financial Statements (Mark 2)