Question

The following transactions and events that occurred in Jeter City during calendar year 2019.

1. The city council adopted the following budget:

Estimated revenues and other sources:
Property taxes	$2,500,000
Sales taxes	1,400,000
Use of fund balance	50,000
Total	$3,950,000
Appropriations:
Streets and parkways:
Personal services	$ 780,000
Equipment	95,000
Operating supplies	125,000
All other appropriations	2,950,000
Total	$3,950,000

2. The Department of Streets and Parkways (S&P) took bids to purchase several items of equipment. The lowest bid came in at $105,000, which was greater than the amount appropriated for equipment. Jeter City’s budget director, who had the authority to interchange budgetary appropriations amounts within a department, authorized a $10,000 reduction in the department’s personal services appropriation and a corresponding increase in the equipment appropriation.

3. S&P entered into contract S&P 2019a for $105,000, charging the equipment appropriation.

4. S&P issued PO 19-1 for asphalt in the amount of $15,000, charging the operating supplies appropriation.

5. S&P received the equipment, and after inspecting all the items, approved the $105,000 invoice for payment.

6. S&P received the asphalt and approved the invoice of $15,000 for payment.

Record the transactions and events applicable to the appropriation for Street and Parkways equipment in the following appropriations ledger.

NOTE: Use a negative sign with your answers if: 1. the amount entered in the Appropriation column is a debit (Dr.) rather than a credit (Cr.); or 2. the amount entered in the Expenditures column is a credit (Cr.) rather than a debit (Dr.).

Appropriations Ledger Appropriation: Streets and Parkways Equipment
	Appropriation	Encumbrances		Expenditures	Available
Item	Cr.	Dr.	Cr.	Dr.	Appropriation
1
2
3
4
5a
5b

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Answer 1

Answer:

S.no	General Journal	Debit	Credit
2	Appropriations - Streets and parkways personal services	10000
	Appropriations - equipment		10000
	To record budget interchange
3	Encumbrances - streets and parkways equipment	105000
	Budgetary fund balance reserved for encumbrances		105000
	To encumber for contract S&P 2019a
4	Encumbrances - streets and parkways operating expenses	15000
	Budgetary fund balance reserved for encumbrances		15000
	To encumber for PO 19-1.
5	Budgetary fund balance reserved for encumbrances	105000
	Encumbrances - streets and parkways equipment		105000
	To reverse encumbrance for contract s&p 2019a
	Expenditures - streets and parkways equipment	105000
	Vouchers payable		105000
	To record expenditure for contract s&p 2019a
6	Budgetary fund balance reserved for encumbrances	15000
	Encumbrances - streets and parkways operating expenses		15000
	To reverse encumbrance for PO 19-1
	Expenditures - streets and parkways operating expenses	15000
	Vouchers payable		15000
	To record expenditure for PO 19-1