Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 3-23 (algo) recording encumbrances [lo 3-

Exercise 3-23 (Algo) Recording encumbrances [LO 3-5] During the month of July, the Town of...

60.1K

Verified Solution

Question

Accounting

Exercise 3-23 (Algo) Recording encumbrances [LO 3-5]

During the month of July, the Town of Lynton recorded the following information related to purchases:

Amount of Purchase Order Actual Cost
General government $ 551,000 $ 491,000
Public safety 736,200 721,013
Public works 955,845 464,480
Culture and recreation 55,270 55,320
Total purchase orders and invoices $ 2,298,315 $ 1,731,813

At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received the same as the actual cost of the items.

Required

  1. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (2) Show entries for the subsidiary ledger accounts.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students