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The City of Batavia ordered new computer equipment for $29,000 on November 3, 20X2. The equipment had not been received by December 31, 20X2, Batavia's
The City of Batavia ordered new computer equipment for $29,000 on November 3, 20X2. The equipment had not been received by December 31, 20X2, Batavia's fiscal year-end Required: a. Assume that the city has a policy that outstanding encumbrances lapse at year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (1) Prepare the entry to record the encumbrance on November 3, 20X2 (2) Prepare the entries required on December 31, 20X2 3)Assuming that the city council accepts outstanding encumbrances in its budget for the next fiscal period (20X3), prepare entries on January 1, 20X3 (4) Prepare entries on January 18, 20X3, when the equipment was received with an invoice cost of $29,400 and accepted by the city (5) Prepare the entry on December 31, 20X3, to close the expenditures account. Journal entry worksheet Record the entry for the equipment order and encumbrances in 20X2. Note: Enter debits before credits. Date General Journal DebitCredit Nov 03 Record entry Clear entry View general journal b. Assume the city's 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.) c. Now assume the city has a policy that outstanding encumbrances are nonlapsing, but the 20X3 City Council decided, during its budget hearings for 20X3, not to accept the encumbrance for the computer equipment that had been ordered on November 3, 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (1) Prepare the entry required on January 1, 20X3, to cancel the encumbrance reserve for the equipment ordered on November 3, 20X2 Journal entry worksheet Record the entry to cancel the 20X2 order for equipment Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal
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