Distinguish between Capital Projects Funds (CPF), Debt Service Funds (DSF) Leased Assets and Permanent Funds.

Question 1:                                                                              (5 Marks)

Q1.The council of the Town of Tulia approved the 2023 budget as follows:

Budgeted 2023 revenues from:

Property taxes                                                                         $5,000,000

Sales taxes                                                                               $1,000,000

Appropriations for 2023:

Salaries                                                                                    $4,600,000

Materials                                                                                 $1,200,000

Equipment                                                                                  $100,000

 

During 2023, the town’s mayor presented the council with a budget revision to increase the amount of appropriation for salaries by $10,000.  The council approved this budget revision.

Required:

1. Prepare the general journal entry necessary to initially record the budget.
2. Prepare the general journal entry necessary to record the budget revision.

 

 Question 2: (5 Marks)

Q.2 Distinguish between Capital Projects Funds (CPF), Debt Service Funds (DSF) Leased Assets and Permanent Funds.

 

 

Question 3:   (5 Marks)

1. What do you mean by Activities Discuss all Types of with details examples.