The City of Batavia ordered new computer equipment for $25,000 on November 3, 20X2. The equipment had not been received by December 31, 20X2, Batavias fiscal year-end.

Required: b. Assume the citys policy is that outstanding encumbrances are nonlapsing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

-Prepare the entry to record the encumbrance on November 3, 20X2.

-Prepare the entries required on December 31, 20X2.

-Assuming that the city council accepts outstanding encumbrances in its budget for the next fiscal period (20X3), prepare entries on January 1, 20X3.

-Prepare entries on January 18, 20X3, when the equipment was received with an invoice cost of $25,750 and accepted by the city.

-Prepare the entry on December 31, 20X3, to close the expenditures account.

REQUIRE ENTRIES:

1. Record the entry for the equipment order and encumbrances in 20X2.

2. Record the entry to close the remaining budgeted encumbrances in 20X2.

3. Record the entry to reserve the fund balance for the outstanding encumbrances in 20X2.

4. Record the entry to reclassify the reserve from the prior year, 20X2, in the current year, 20X3.

5. Record the actual expenditure for the goods received in 20X3.

6. Record the entry to close the expenditures account for the prior-year encumbrances in 20X3.

7. Record the entry to close the expenditures for the current year, 20X3.

Journal entry worksheet