(Solved): Encumbrance journal entries Prepare journal entries to record the following transactions for the Vi ...
Encumbrance journal entries
Prepare journal entries to record the following transactions for the Village of Radnor. Classify the expenditures as Parks supplies.
1. Placed purchase order 960 for supplies in the amount of $6,400 and purchase order 961 for supplies in the amount of $4,800. The purchase orders allowed the suppliers to ship and bill for additional quantities, up to 5 percent of the order.
2. Received the supplies ordered on purchase order 960, together with an invoice for $6,640. The supplies, including the additional quantities, were accepted, and a voucher was prepared for $6,640.
3. Received all the supplies ordered on purchase order 961, together with an invoice for $4,640. The supplier said that production costs were less than anticipated, and it was passing the lower cost on to Radnor. A voucher for $4,640 was prepared.
4. The voucher for $6,640 was paid.
Answer
Answer
To record PO 960 and 961
Answer
Answer
To record receipt of supplies on PO 960
Answer
Answer
To record voucher for PO 960
Answer
Answer
To record receipt of supplies on PO 961
Answer
Answer
To record voucher for PO 961
Answer
Answer
To record payment of voucher