Ridge township's governing body adopted its general fund budget for the year ended july 31, year 1, composed of estimated revenues of $100,000 and appropriations of $80,000, ridge formally integrates its budget into the accounting records. to record the appropriations of $80,000, ridge should:

a) credit appropriations control
b) debit estimated expenditures control
c) debit appropriations control.
d) credit estimated expenditures control.

a) credit appropriations control  

Explanation:

Ridge township's governing body adopted its general fund budget for the year ended July 31, year 1, composed of estimated revenues of $100,000 and appropriations of $80,000, ridge formally integrates its budget into the accounting records. to record the appropriations of $80,000, ridge should:  credit appropriations control .

In government or public sector accounting which deals with the transaction recording of government agencies, the adoption of a budget is treated thus:

Dr. Estimated Revenues

Cr. Appropriations Control

Whatever variations in amount are then credited or debited to the fund balance

A) credit appropriations control

Explanation:

The Governmental Accounting Standards Board (GASB) sets rules for public entities, and its rules states that appropriations must be credited once they are authorized. The government entity should also debit estimated revenues and debit/credit any differences in fund balances.

The appropriate journal entry to record this transaction should be:

July 31, Year 1:

Dr Estimated revenues 100,000

    Cr Appropriations control 80,000

    Cr Budgetary fund balance 20,000

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.