(Encumbrances)

On April 25, the City of Bryn Mawr ordered supplies with a quoted price of

$80,000. On May 15, one half of the supplies arrived, along with an invoice for

$40,000. On June 6, the other half of the supplies arrived, accompanied by an invoice for $42,000. Both invoices were paid at the end of the month of arrival.

Assume that there are sufficient resources in the appropriation to pay both invoices and that invoices are approved for payment upon receipt of the accompanying goods or services.

Required: 1. Prepare entries to record setting up the encumbrance, the arrival of the supplies in May and June and approval of the invoice, and the payment for the supplies.

2. What effect, if any, will the second invoice have on the balance of the appropriation?