Question
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.
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