Assignment Description

Part 1: Research the following statements and write a paper 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:

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:

3.  Purchase orders were issued for the following goods and services:

4.  Purchase orders were fulfilled based upon the following estimated and actual costs: