You are maintaining a subsidiary ledger account for Firefighter-Training Expenditures for 2018. The following columns are used: Encumbrances Date Item Dr. Cr. Bal. Expenditures Unobligated Balance Inventory purchases are initially recorded as expenditures (purchases method). Record the following 2018 transactions in the police-training expenditures subsidiary ledger account:Jan. 1 The budget includes $25,000 for police-training expenditures.15 Equipment and supplies, estimated at $16,000 cost, are ordered.Feb. 1 Vouchers for $5,000 are approved for items not encumbered.15 Items encumbered for $12,000 on January 15 are received with invoices totaling $12,300. Supplies are expended when purchased; however, an inventory is taken at year-end, and expenditures are adjusted at that time.June 3 The remaining encumbered expenditures arrive. The invoice totals $6,300, including items not included in the encumbered amount.Dec. 31 An inventory of training supplies is taken and recorded at $2,000.
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
You are maintaining a subsidiary ledger account for Firefighter-Training Expenditures for 2018. The following columns are used:
| Encumbrances | ||||||
| Date | Item | Dr. | Cr. | Bal. | Expenditures | Unobligated Balance |
Inventory purchases are initially recorded as expenditures (purchases method). Record the following 2018 transactions in the police-training expenditures subsidiary ledger account:
Jan. 1 The budget includes $25,000 for police-training expenditures.
15 Equipment and supplies, estimated at $16,000 cost, are ordered.
Feb. 1 Vouchers for $5,000 are approved for items not encumbered.
15 Items encumbered for $12,000 on January 15 are received with invoices totaling $12,300. Supplies are expended when purchased; however, an inventory is taken at year-end, and expenditures are adjusted at that time.
June 3 The remaining encumbered expenditures arrive. The invoice totals $6,300, including items not included in the encumbered amount.
Dec. 31 An inventory of training supplies is taken and recorded at $2,000.
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