Part I. The city council of Gandy, WI, population 301,277, passed its 2018 fisca

Question

Part I. The city council of Gandy, WI, population 301,277, passed its 2018 fiscal year budget (July 1, 2017 to June 30, 2018). Gandy has a high unemployment rate for Wisconsin, as a major manufacturing plant shut down and moved to lower-costing Texas. For fiscal year 2017, Gandy closed the fiscal year with an operating deficit of $590,000. Fund Balance--Unassigned at June 30, 2017 before applying the operating deficit, was $965,000. Gandy has the following FY 2018 budget adoption information Estimated Revenues: Property Taxes Fines and Forfeits Charges for Services Miscellaneous Revenues S 1,214,000 108,000 389,600 119,000 Totals S 1,830,600 Appropriations: Education Public Safety Public Works General Government 839,600 1,425,000 633,700 1,879,000 Totals S 4,777,300 Estimated Other Financing Sources Transfers from State of WI Proceeds from bond issue S 3,645,300 1,000,000 4,645,300

Explanation / Answer

1) Journal Entry for the fiscal year 2018

Estimated Revenue

Dr(+) 1830600

Appropriation

Dr (-) 4777300

Est other Financing Sources

Cr (-) 4645300

Est other Financing uses

Dr (-) 2050000

2) Yes this is surplus budget as we can see

total revenue =estimate revenue - appropriation + est other financing source - est other financing use

=$1830600 -$4777300 +$4645300 -$2050000

= $23600 Current year surplus

Operating deficit $590000 , Unasigned fund $965000 =Surplus (2017) $475000

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