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

b. GAAP budgetary basis