The City of Batavla ordered new computer equipment for $30,000 on November 3,202. The equipment had not been recelved by December 31, 202, Batevia's fiscal year-end. b. Assume the city's policy is that outstanding encumbrances are nonlapsing. Note: If no entry Is requlred for a transactlon/event, select "No journal entry required" In the first account fleld. 1. Prepare the entry to record the encumbrance on November 3,202 2. Prepare the entries required on December 31,202. 3. Prepare the entry on January 1,203, to classify the expenditure in 202, the year the encumbrance was initiated. 4. Prepare the entry on January 18,203, when the equipment was recelved for $30,600. The City Council approved the additional $600 equipment cost as an addition to 203 's expenditures. 5. Prepare the entrles on December 31,203, to close the expenditures accounts. 1 Record the entry for the equipment order and encumbrances in 202. 2 Record the entry to close the remaining budgeted encumbrances in 202. 3 Record the entry to reserve the fund balance for the outstanding encumbrances in 202. 4 Record the entry to reclassify the reserve from the prior year, 202, in the current year, 203. 5 Record the actual expenditure for the goods received in 203. 3 Record the entry to reserve the fund balance for the outstanding encumbrances in 202. 4 Record the entry to reclassify the reserve from the prior 5 Record the actual expenditure for the goods received in 203. 6 Record the entry to close the expenditures account for the prior-year encumbrances in 203. 7 Record the entry to close the expenditures for the current year, 203. c. Now assume the city has a policy that outstanding encumbrances are nonlapsing, but the 203 City Council decided, during its budget hearings for 203, not to accept the encumbrance for the computer equipment that had been ordered on November 3 , 202 Note: If no entry Is required for a transaction/event, select "No journal entry required" In the frst account fleid. 1. Prepare the entry required on January 1,203, to cancel the encumbrance reserve for the equipment ordered on November 3 , 202. Journal entry worksheet Record the entry to cancel the 202 order for equipment. Note: Enter debits before credits