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During the month of July, the Town of Lynton recorded the following information related to purchases: General government Amount of Purchase Order Actual Cost
During the month of July, the Town of Lynton recorded the following information related to purchases: General government Amount of Purchase Order Actual Cost $ 553,000 $ 493,000 Public safety Public works 738,200 957,845 723,013 466,480 Culture and recreation Total purchase orders and invoices 57,270 $2,306,315 57,320 $1,739,813 At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received the same as the actual cost of the items. Required a. (1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts. b. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (2) Show entries for the subsidiary ledger accounts. Complete this question by entering your answers in the tabs below. Req a1 Req a2 Req b1 Req b2 Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No A Event General Journal 1. Encumbrances Outstanding Encumbrances Debit 1,739,813 Credit 1,739,813
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