During the month of July, the Town of Lynton recorded the following information related to purchases: Amount of Purchase Order $ 565,000 750, 200 969,845 69, 270 $2,354,315 General government Public safety Public works Culture and recreation Total purchase orders and invoices Actual Cost $ 505,000 735, 013 478,480 69.320 $1,787,813 At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received the same as the actual cost of the items. Required a. (1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts. b. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (2) Show entries for the subsidiary ledger accounts including the amounts entered to the Encumbrances ledger from Req. a2. Complete this question by entering your answers in the tabs below. Req al Req a2 Req b1 Reg b2 Prepare the general journal entry to record the issuance of the purchase orders. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
During the month of July, the Town of Lynton recorded the following information related to purchases: Amount of Purchase Order $ 565,000 750, 200 969,845 69, 270 $2,354,315 General government Public safety Public works Culture and recreation Total purchase orders and invoices Actual Cost $ 505,000 735, 013 478,480 69.320 $1,787,813 At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received the same as the actual cost of the items. Required a. (1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts. b. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (2) Show entries for the subsidiary ledger accounts including the amounts entered to the Encumbrances ledger from Req. a2. Complete this question by entering your answers in the tabs below. Req al Req a2 Req b1 Reg b2 Prepare the general journal entry to record the issuance of the purchase orders. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:During the month of July, the Town of Lynton recorded the following information related to purchases:
General government
Public safety
Public works
Culture and recreation
Total purchase orders and invoices
At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works
in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be
delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received
the same as the actual cost of the items.
Req a1
Required
a. (1) Prepare the general journal entry to record the issuance of the purchase orders.
(2) Show entries in subsidiary ledger accounts.
b. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable.
(2) Show entries for the subsidiary ledger accounts including the amounts entered to the Encumbrances ledger from Req. a2.
Complete this question by entering your answers in the tabs below.
Req a2
View transaction list
Amount of
Purchase
Order
565, 000
750, 200
969, 845
69, 270
$2,354, 315
Journal entry worksheet
< A
$
Req b1
Note: Enter debits before credits.
Event
1.
Prepare the general journal entry to record the issuance of the purchase orders. (If no entry is required for a transaction/event, select
"No Journal Entry Required" in the first account field.)
Record entry
Actual Cost
$505, 000
735, 013
478, 480
69, 320
$1,787, 813
Record the issuance of the purchase orders and contracts.
Req b2
General Journal
Clear entry
< Req a1
Debit
Credit
View general journal
Req a2 >
>
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