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The City of Island Grove uses encumbrance accounting and its fiscal year ends on June 30. On May 6, a purchase order was approved and

The City of Island Grove uses encumbrance accounting and its fiscal year ends on June 30. On May 6, a purchase order was approved and issued for supplies in the amount of $6,000. Island Grove received these supplies on June 2, and the $6,000 invoice was approved for payment. What General Fund journal entry or entries should Island Grove make on June 2, upon receipt of the supplies and approval of the invoice?

Transaction General Journal Debits Credits

A) Encumbrances Outstanding 6,000

Encumbrances 6,000

Expenditures 6,000

Vouchers Payable 6,000

B) Encumbrances 6,000

Appropriations 6,000

Fund Balance?Unassigned 6,000

Vouchers Payable 6,000

C) Supplies 6,000

Vouchers Payable 6,000

D) Appropriations 6,000

Encumbrances 6,000

Supplies 6,000

Vouchers Payable 6,000

Multiple Choice

Choice A.

Choice B.

Choice C.

Choice D.

image text in transcribed
Transaction General Journal Debits Credits A) Encumbrances Outstanding 6,000 Encumbrances 6,000 Expenditures 6,000 Vouchers Payable 6, 000 B ) Encumbrances 6,000 Appropriations 6,060 Fund Balance-Unassigned 6,000 Vouchers Payable 6,000 C) Supplies 6,000 Vouchers Payable 6,000 D) Appropriations 6,060 Encumbrances 6,000 Supplies 6,900 Vouchers Payable 6,060

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