Question

The City of South Dundee budget for the fiscal year ended June 30, 2017, included an appropriation for the police department in the amount of $8,700,000. During the month of July 2017, the following transactions occurred (in summary):
Purchase orders were issued in the amount of $520,000.
Of the $520,000 in purchase orders, $480,000 were filled, with invoices amounting to $478,000.
Salaries, not encumbered, amounted to $287,000.
A budget appropriations reduction in the amount of $50,000 was approved by the city council.
Prepare an appropriations, expenditures and encumbrances ledger for the police department for the month of July. (Credit amounts should be indicated by a minus sign.)

Answer 1

Answer and Explanation:

The preparation of the appropriations, expenditures and encumbrances ledger for the police department for the month of July is presented below:

                                      City of South Dundee

                  Appropriations, expenditures and encumbrances ledger

                                          General fund

                                   Month of July, 2017

Trans     Reference    Appropriations    encumbrances  expenditures  unexpended appropriation balances

1.             Budget        -$8,700,000                                          

-$8,700,000

2.       Purchased order                             $520,000

-$8,180,000

3. Invoice issued                                       -$480,000        $478,000

-$8,182,000

4. Payrolls                                                                             $287,000

-$7,895,000

5. Budget revision        $50,000

-$7,845,000

Total                            -$8,650,000           $40,000          $765,000

-$7,845,000