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