Question
The December 31, 2019 balance sheet for the general fund of the City of Melville showed an assigned fund balance of $2,500,000 for outstanding encumbrances.
The December 31, 2019 balance sheet for the general fund of the City of Melville showed an assigned fund balance of $2,500,000 for outstanding encumbrances. This figure represented $2,100,000 encumbered for office equipment and $400,000 for supplies. Early in 2020, the equipment and supplies were delivered and bills received for $2,095,000 and $402,000, respectively. Required Prepare the journal entries for 2020 relating to these events, using the a. Legal budgetary basis. Description Debit Credit Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 To record invoices for goods and services ordered in 2019. Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 Expendituresprior year encumbrances Answer 0 Answer 0 To close encumbrances carried over from 2019 and related expenditures. b. GAAP budgetary basis. Description Debit Credit Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 To restore encumbrances carried over from 2019. Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 To reverse encumbrances for goods and services received. Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 To record invoices for goods and services. Please answer all parts of the question.
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