Question

The City of Hutchinson appropriated $80,000 to the Parks Department for the purchase of landscape plants, small tools, and small equipment. The following transactions occurred for the department during the current month. CITY OF HUTCHINSON TRANSACTIONS FOR PARKS DEPARTMENT FOR CURRENT MONTH (I) The department issued Purchase Order 100 for landscape plants at an estimated cost of (2) The department issued Purchase Order 101 for the purchase of small tools at an estimated (3) The items in Purchase Order 100 were received with an invoice of $27,000. The invoice $25,000. cost of S30,000 was vouchered for payment. (4) The invoice received in (3) above was paid. (5) An emergency required that the department purchase 2 chain saws immediately. After calling three local suppliers to get the best price, the parks superintendent obtained a check for $500 from the finance director and picked up the chain saws REQUIRED: Using the attached form, prepare the general journal entry(ies), in good form, to record the transactions for the Parks Department for the current month. Omit explanations. Use the number of the entry for the date.

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Event	Account	Debit	Credit
1	Encumbrances	$ 25,000
	Budgetary Fund Balance for Encumbrances		$ 25,000
	(to record PO 100)
2	Encumbrances	$ 30,000
	Budgetary Fund Balance for Encumbrances		$ 30,000
	(to record PO 101)
3	Budgetary Fund Balance for Encumbrances	$ 25,000
	Encumbrances		$ 25,000
	(being PO 100 reversed)
3	Expenditure	$ 27,000
	Voucher Payable		$ 27,000
	(being voucher recorded)
4	Voucher Payable	$ 27,000
	Cash		$ 27,000
	(being voucher paid)
5	Expenditure	$       500
	Cash		$       500
	(being purchased made in cash-emergency)