Accounting

Part 1: Research the following statements and write a paper of 500 words on your findings:What are the key differences between a governmental unit and a commercial company?Discuss the following terms and how they are used during the budget process of a governmental unit:AppropriationsEncumbrancesExpendituresBudgetary fund balancesGive examples for each of the above terms.Part 2: Given the following information, create the journal entries required for each of the situations described:Estimated revenuesProperty taxes$1,250,000Fines and forfeits80,000Intergovernmental500,000Total$1,830,000AppropriationsGeneral$300,000Streets50,000Public safety800,000Total$ 1,150,000Make the journal entry to record the adoption of the annual budget.Make the journal entries necessary to record the following cash revenues that were received:Property taxes$800,000Fines and forfeits73,000Intergovernmental300,000Total$1,173,000Purchase orders were issued for the following goods and services:General$285,000Streets50,000Public safety670,000Total$ 1,005,000Purchase orders were fulfilled based upon the following estimated and actual costs:EstimatedActualGeneral$285,000$280,000Streets50,00050,000Public safety670,000660,000Total$ 1,005,000$ 990,000