Question

At the beginning of its fiscal year, the Town of Harmon estimates that its revenues for street maintenance activities are $100,000, and it appropriates $90,000 forstreet maintenance supplies. It currently has outstanding encumbrances for street maintenance supplies of $40,000 and has incurred expenditures for street maintenance supplies of $30,000. How much does the Town of Harmon currently have available to spend for street maintenance supplies

Answer 1

Answer:

The amount that the Town of Harmon currently have available to spend for street maintenance supplies is $20,000.

Explanation:

From the question, we can obtain the following:

Amount appropriated for street maintenance supplies = $90,000

Outstanding encumbrances for street maintenance supplies = $40,000

Expenditures incurred for street maintenance supplies = $30,000

Therefore, we have:

Amount currently available to spend for street maintenance supplies = Amount appropriated for street maintenance supplies - Outstanding encumbrances for street maintenance supplies - Expenditures incurred for street maintenance supplies = $90,000 - $40,000 - $30,000 = $20,000

Therefore, the amount that the Town of Harmon currently have available to spend for street maintenance supplies is $20,000.