What are the key differences between a governmental unit and a commercial company?, accounting homework help

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:
    • Appropriations
    • Encumbrances
    • Expenditures
    • 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:

Estimated revenues
Property taxes$1,250,000
Fines and forfeits80,000
Intergovernmental500,000
Total$1,830,000
Appropriations
General$300,000
Streets50,000
Public safety800,000
Total$ 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 forfeits73,000
Intergovernmental 300,000
Total$1,173,000
  1. Purchase orders were issued for the following goods and services:
General$285,000
Streets 50,000
Public safety 670,000
Total$ 1,005,000
  1. Purchase orders were fulfilled based upon the following estimated and actual costs:
EstimatedActual
General$285,000$280,000
Streets 50,00050,000
Public safety 670,000660,000
Total$ 1,005,000
 
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