Prepare the general journal entry necessary to initially record the budget.

• The council of the Town of Fursan approved the 2019 budget as follows: (Mark 1)

            Budgeted 2019 revenues from:

               Property taxes                                                                             $4,000,000

               Sales taxes                                                                                  $1,000,000

            Appropriations for 2019:

               Salaries                                                                                       $3,600,000

               Materials                                                                                    $1,000,000

               Equipment                                                                                     $100,000

            During 2019, the town’s mayor presented the council with a budget revision to increase the amount of appropriation for salaries by $50,000.  The council approved this budget revision.

Required:

            a.         Prepare the general journal entry necessary to initially record the budget.

            b.         Prepare the general journal entry necessary to record the budget revision.