On February 15, the Town of Evergreen police chief€™s administrative assistant is preparing a purchase order to place an order for a new computer. The computer is estimated to cost $1,600. Prior to submitting the purchase order, he is required to verify that an appropriation is available in a sufficient amount to cover the cost of the new computer. His computer display shows the following current information for the Police Chief Equipment account and Office Supplies account.

Required
Review the police chief accounts as of February 15, and answer the following questions, assuming you are the administrative assistant.
a. Is the available appropriation balance sufficient to authorize placing the purchase order for the new computer?

b. You notice an available appropriation balance in the office supply account. Under what circumstances might the office supplies appropriation balance be used for the equipment purchase?

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Account No. 1010012058510 Department/Activity Object Police Department/Chief Equipment Year 20xx Encumbrances Available Closed Date Reference Originated Expenditures Appropriation Budget Jan 2 4,500 Jan 21 PO 13-65 3,000 1,500 Jan 30 2,990 Voucher 13-794 3,000 1,510 Account No. 1010012058300 Department/Activity Object Police Department/Chief Office Supplies Year 20xx Encumbrances Available Appropriation Date Reference Originated Closed Expenditures Budget Jan 2 5,000 Jan 15 PO 16–98 500 4,500 500 Jan 30 Voucher 13-794 495 4,505