Assuming that a city ordinance mandates a balanced budget


Problem - Recording Adopted Budget. The City of Marion adopted the following General Fund budget for fiscal year 2011:

Estimated Revenues:

Taxes $3,000,000

Intergovernmental revenues 1,000,000

Licenses and permits 400,000

Fines and forfeits 150,000

Miscellaneous revenues 100,000

Total estimated revenues $4,650,000

Appropriations:

General Government $950,000

Public safety 2,000,000

Public works 950,000

Health and welfare 850,000

Miscellaneous 50,000

Total appropriations $4,800,000

Assuming that a city ordinance mandates a balanced budget, what must be the minimum amount in the Fund Balance account of the General Fund at the beginning of FY 2011?

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Accounting Basics: Assuming that a city ordinance mandates a balanced budget
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