Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3: Encumbrances and expenditures for the general fund. Use the information below to answer questions 3 5. The Finance Director of the Village of

Problem 3: Encumbrances and expenditures for the general fund.

Use the information below to answer questions 3 5.

The Finance Director of the Village of Glenville received an appropriation in the amount of $5,000 for the purchase of ink cartridges for the departments printers and copiers for the year ending December 31, 2021. The appropriation for ink cartridges is included in the general government appropriation for commodities. During the months of January and February, 2021, the following events occurred:

  1. On January 18, purchase order #12098 was approved to acquire 30 ink cartridges for $22 each from Office Depot.
  2. On February 11, Office Depot delivered all of the ink cartridges and submitted an invoice to the Village treasurer for $645. Payment was authorized on voucher #287645.
  3. On February 21, the voucher was paid.
  4. On February 28, the Villages finance director authorized a budget interchange that decreased the general government appropriation for commodities by $250 and increased the same line item in the budget for community development.

Required: (explanations are not needed for journal entries):

  1. Prepare the journal entry to record the purchase order on January 18.
  2. Prepare the journal entries to record the receipt of the ink cartridges on February 11.
  3. What is the available appropriation for ink cartridges as of February 28? Use the template of the subsidiary ledger account on the answer form to show how this amount is determined.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson

17th edition

78025826, 978-1259564239, 1259564231, 978-0078025822

More Books

Students also viewed these Accounting questions

Question

What size is the organization?

Answered: 1 week ago

Question

What is the corporate culture of the organization?

Answered: 1 week ago