Question

4-5. Prepare journal entries in the General Fund of the Brownvile School District. a. The District had outstanding encumbrances of $11,200 for band instru- ments from the previous year. It is the District's policy to re-establish those encumbrances in the subsequent year. b. The District ordered textbooks at an estimated cost of $57,000. c. The hand instruments aived at an invoice price of Si0,90 plus $290 shipping. d. Textbooks originally estimated to cost $49,000 were received with an invoice price of $48,500. The remaining portion of the order is back-ordered. e. A contract was signed with a CPA to provide the annual audit in the amount of $5,200.

Answer 1

Ans- Journal Entries

No.	Account Title and Explanation	Debit ($)	Credit ($)
a.	Encumbrances control (prior year)	11,200
	Budgetary fund balance- reserve for encumbrances		11,200
b.	Encumbrances control	57,000
	Budgetary fund balance-reserve for encumbrances		57,000
c.	Budgetary fund balance- reserve for encumbrances control (prior year)	11,200
	Expenditure control (Prior year)		11,200
	Expenditure control (prior year)	11,190
	Accounts Payable ($10,900+290)		11,190
d.	Budgetary fund balance-reserve for encumbrances	49,000
	Encumbrances Control		49,000
	Expenditures Control	48,500
	Accounts Payable		48,500
e.	Encumbrances Control	5,200
	Budgetary fund balance- reserve for encumbrances		5,200