Question

The City of South River budget for the fiscal year ended June 30, 2020, included an appropriation for the police department in the amount of $8,721,000. During the month of July 2020, the following transactions occurred (in summary):
a, Purchase orders were issued in the amount of $563,000.
b. Of the $563,000 in purchase orders, $511,000 were filled, with invoices amounting to $501,000.
c. Salaries, not encumbered, amounted to $317,000.
d. A budget appropriations reduction in the amount of $60,000 was approved by the city council.

Required:
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:

Appropriation ($) balance = – $8,661,000

Encumbrance balance = $52,000

Expenditure balance = $818,000

Unexpended Appropriation Balance = – $7,791,000

Explanation:

Note: See the attached excel file for the appropriations, expenditures, and encumbrances ledger for the police department for the month of July.

Also note: In the excel file, the last balance in  column for the Unexpended Appropriation Balance is the balance obtained in the Transaction e row since the balance in the row is cumulative.

Download xlsx