1 answer

Part V. Appropriations/Encumbrances/Expenditures The City of Arcadia Police Department gets an annual appropriation from the City...

Question:

Part V. Appropriations/Encumbrances/Expenditures The City of Arcadia Police Department gets an annual appropriation from the
e. The department placed a purchase order for bulletproof vests in the amount of $20,000 f. The department later cancelled th
Part V. Appropriations/Encumbrances/Expenditures The City of Arcadia Police Department gets an annual appropriation from the City for "Weapons and Miscellaneous" during 2013. Use encumbrances accounting. Prepare General fund journal entries to record the following transactions related to the appropriation received by the Police Department: The department received an appropriation allocation of $100,000. (Dr. "Budgetary Fund Balance" to make the entry balance.) a b. The department issued a purchase order for $8,000 for new handguns. C. The vendor sent the handguns and an invoice for $8,400, stating that a recent design changed provided greater accuracy at long range. The department approved the invoice for payment within 30 days. d. The Arcadia Comptroller paid the invoice received in c., above.
e. The department placed a purchase order for bulletproof vests in the amount of $20,000 f. The department later cancelled the purchase order issued in e., above, because it learned that the manufacturer of the bulletproof shields had gone out of business.

Answers

40 Credit 41 42 a) 43 In the Books of City of Arcadia police department Account Title & Explanation Budgetary Fund Balance Ap

64 f) 20,000 65 Fund Balance Reserve for Encumbrances Encumbrances (To record cancellation of orders) 20,000 66 67 68

.

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