The City of Westboro passed an appropriations ordinance for the year ended June 30, 2014.

Included in the appropriations ordinance was an appropriation for public safety in the amount of $9,600,000. During the month ended July 31, 2012 the following transactions took place:

Purchase orders were issued in the amount of $410,000.

Goods were received, related to purchase orders in the amount of 200,000, along with invoices amounting to $205,000.

Salaries were paid in the amount of $450,000

Required:

Compute the amount of appropriations available at July 31, 2014.

Answer:

	Effect on available appropriations	Balance in Available Appropriations
Original Budget	$ 9,600,000	$ 9,600,000
a. Record Encumbrances
b. Record Expenditures
Reverse Encumbrances
c. Salaries (Expenditure)