accounting

The Board of Aldermen of Finchville approved the appropriations budget for its General Fund for the year ending December 31 as shown below.
General government.............................................. $ 600,000
Public safety.......................................................... 3,100,000
Public works.......................................................... 1,400,000
Health and welfare................................................ 800,000
Culture and recreation........................................... 400,000
Contributions to retirement fund........................... 700,000
Total General Fund appropriations....................... $ 7,000,000
At the same time the Board approved a revenue budget that indicated that General Fund revenues, which are generated solely from property taxes, would exceed appropriations by five percent.
a. Explain the legal significance of an appropriation and why city officials and the city’s auditors need to know the meaning of the term.
b. It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists. Does this legal rule assure good financial management for each government? Why or why not?
c. Provide an entry in general journal form to record the budget.
d. Illustrate a form of an expenditures subledger account (i.e., list the column headings) that would provide the information needed by a government finance director to ensure that legal requirements concerning appropriations are complied with.

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