Carryover Encumbrances The December 31, 2019 balance sheet for the general fund of the City of Melville showed an assigned fund balance of $2,500,000 for outstanding encumbrances. This figure represented $2,100,000 encumbered for office equipment and $400,000 for supplies. Early in 2020, the equipment and supplies were delivered and bills received for $2,095,000 and $402,000, respectively. Required Prepare the journal entries for 2020 relating to these events, using the a. Legal budgetary basis. Description Debit Credit Expenditures-prior year encumbrances 395,000 X 0 Accounts payable 0 60,000 X To record invoices for goods and services ordered in 2019. Fund balance-assigned 2,500,000 Fund balance-unassigned 2,100,000 x Expenditures-prior year encumbrances 2,100,000 X To close encumbrances carried over from 2019 and related expenditures. 0 0 O Credit Debit 2,500,000 0 0 2,500,000 b. GAAP budgetary basis. Description Encumbrances Fund balance unassigned To restore encumbrances carried over from 2019. Fund balance-assigned Encumbrances To reverse encumbrances for goods and services received. Expenditures Accounts payable To record invoices for goods and services. 2,500,000 0 0 2,500,000 0 0 0 X Carryover Encumbrances The December 31, 2019 balance sheet for the general fund of the City of Melville showed an assigned fund balance of $2,500,000 for outstanding encumbrances. This figure represented $2,100,000 encumbered for office equipment and $400,000 for supplies. Early in 2020, the equipment and supplies were delivered and bills received for $2,095,000 and $402,000, respectively. Required Prepare the journal entries for 2020 relating to these events, using the a. Legal budgetary basis. Description Debit Credit Expenditures-prior year encumbrances 395,000 X 0 Accounts payable 0 60,000 X To record invoices for goods and services ordered in 2019. Fund balance-assigned 2,500,000 Fund balance-unassigned 2,100,000 x Expenditures-prior year encumbrances 2,100,000 X To close encumbrances carried over from 2019 and related expenditures. 0 0 O Credit Debit 2,500,000 0 0 2,500,000 b. GAAP budgetary basis. Description Encumbrances Fund balance unassigned To restore encumbrances carried over from 2019. Fund balance-assigned Encumbrances To reverse encumbrances for goods and services received. Expenditures Accounts payable To record invoices for goods and services. 2,500,000 0 0 2,500,000 0 0 0 X