2. The Department of Streets and Parkways (S&P) took bids to purchase several items of equipment. The lowest bid came in at $105,000, which was greater than the amount appropriated for equipment. Jeter Citys budget director, who had the authority to interchange budgetary appropriations amounts within a department, authorized a $10,000 reduction in the departments personal services appropriation and a corresponding increase in the equipment appropriation. 3. S&P entered into contract S&P 2022a for $105,000, charging the equipment appropriation. 4. S&P issued PO 22-1 for asphalt in the amount of $15,000, charging the operating supplies appropriation. 5. S&P received the equipment, and after inspecting all the items, approved the $105,000 invoice (related to contract in number 3) for payment. 6. S&P received the asphalt and approved the invoice of $15,000 for payment.

Preparation of appropriations ledger The following transactions and events that occurred in Jeter City during calendar year 2022. 1. The city council adopted the following budget: Adopted Budget Revenues Property taxes $2,500,000 Sales taxes 1,400,000 Use of fund balance 50,000 Total $3,950,000 Appropriations: Streets and parkways: Personal services $780,000 Equipment 95,000 Operating supplies 125,000 All other appropriations 2,950,000 Total $3,950,000 Prepare an appropriations ledger to record the transactions and events applicable to the appropriation for Street and Parkways equipment. The ledger should have columns for appropriation (Cr.), encumbrances (Dr. and Cr.), expenditures (Dr.), and available appropriation (Cr.) similar to Table 3-6. Appropriation: Streets and Parkways Equipment Available Appropriation Encumbrances Expenditures Appropriation Item Dr. Cr. Cr. 1 Budget 0 2 Budget Inc 0 3 S&P2022a 0 5 S&P 2022a 0 0 0 0 6 S&P2022aExp 0 0 0 Cr. Dr. 0 0 0 0 0 0 0 0