When Rolan county adopted its budget for the year ending June 30, year 1, $20 million was recorded for estimated revenues control. Actual revenues for the year ended June 30, Year 1, amounted to $17 million. In closing the budgetary accounts at June 30, Year 1,

a. Revenues control should be debited for $3 million

b. Estimated revenues control should be debited for $3 million

c. Revenues control should be credited for $20 million

d. Estimated revenues control should be credited for $20 million

Question

Marlee Heath

Business

24 April, 17:00

When Rolan county adopted its budget for the year ending June 30, year 1, $20 million was recorded for estimated revenues control. Actual revenues for the year ended June 30, Year 1, amounted to $17 million. In closing the budgetary accounts at June 30, Year 1,

a. Revenues control should be debited for $3 million

b. Estimated revenues control should be debited for $3 million

c. Revenues control should be credited for $20 million

d. Estimated revenues control should be credited for $20 million

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Answers (1)

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Sebastian Daugherty · Answer 1

Answer: d. Estimated revenues control should be credited for $20 million

Explanation: The estimated revenue control of Rolan County which amounts to $20 million will be a debit upon adoption as it an anticipatory asset. Therefore when closing the budgetary account, the estimated control revenue will be credited for the initial debited amount of $20 million since no entries are made to them when the closing budget entry is being made.