(Prior-year encumbrances that remain open) The City of Eleanor follows a policy of allowing encumbrances to remain...
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(Prior-year encumbrances that remain open)
The City of Eleanor follows a policy of allowing encumbrances to remain in force until the goods are delivered or the purchase orders are canceled. At the end of FY 2004, supplies costing $\$ 10,000$ have not been delivered. In March 2005 , the supplies arrive, accompanied by an invoice for $\$ 12,000$.
Required: 1. What entry or entries should be made at the end of FY 2004?
2. What entry or entries should be made at the beginning of FY 2005?
3. What entry or entries should be made when the supplies arrive?
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Related Book For
Introduction To Government And Not For Profit Accounting
ISBN: 9780130464149
5th Edition
Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch
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