Dr

Cr

Fund Balance Assigned DR CR

$25,000.00

Encumbrances

$25,000.00

Expense

$25,125

Vouchers Payable

$25,125

a.Transfer funds from the temporary account to the actual account.

b.Close the encumbrance account.

c.Increase the Fund Balance by estimated expenses.

d.Reverse for encumbrances at estimated cost and then to record an invoice at actual cost.