During the month of July, the Town of Lynton recorded the following information related to purchases: Amount of Purchase Order Actual Cost General government $ 569,000 $ 509,000 Public safety 754,200 739,013 Public works 973,845 482,480 Culture and recreation 73,270 73,320 Total purchase orders and invoices $ 2,370,315 $ 1,803,813 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.
During the month of July, the Town of Lynton recorded the following information related to purchases: Amount of Purchase Order Actual Cost General government $ 569,000 $ 509,000 Public safety 754,200 739,013 Public works 973,845 482,480 Culture and recreation 73,270 73,320 Total purchase orders and invoices $ 2,370,315 $ 1,803,813 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:During the month of July, the Town of Lynton recorded the following information related to
purchases:
Amount of
Purchase Order
Actual
Cost
General government
$
569,000
$ 509,000
Public safety
754,200
739,013
Public works
973,845
482,480
Culture and recreation
73,270
73,320
Total purchase orders
and invoices
$
2,370,315
$ 1,803,813
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.

Transcribed Image Text: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.
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