During the month of July, the Town of Lynton recorded the following information related to purchases:

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

1. (1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts.
2. (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.

General government Public safety Public works Culture and recreation Total purchase orders and invoices Amount of Purchase Order Actual Cost $ 560,000 $ 500,000 745, 200 730,013 964,845 473,480 64,270 64,320 $2,334,315 $1,767,813 Journal entry worksheet A Record the issuance of the purchase orders and contracts. Note: Enter debits before credits. General Journal Debit Credit Event 1. Record entry Clear entry View general journal Show entries in subsidiary ledger accounts. TOWN OF LYNTON Encumbrances Ledger Encumbrances Encumbrances Encumbrances Increase Decrease Balance Dr Cr Dr(Cr) Account/Description General Government Public Safety Public Works Culture and Recreation Journal entry worksheet A B > Record the expending of appropriations. Note: Enter debits before credits. Event General Journal Debit Credit 1. Record entry Clear entry View general journal Journal entry worksheet