Prepare the journal entries for the following activity in the General Fund of the City of Rivers. On 1/15/20 the city issues purchases orders in the amount of $40,000 to buy two vehicles ($20,000 each)On 2/25/20 the city receives 1 vehicle. The invoice amount is $21,000.On 3/10/20 the city pays the invoice.

Answered: Prepare the journal entries for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare the journal entries for the following activity in the General Fund of the City of Rivers.

On 1/15/20 the city issues purchases orders in the amount of $40,000 to buy two vehicles ($20,000 each)
On 2/25/20 the city receives 1 vehicle. The invoice amount is $21,000.
On 3/10/20 the city pays the invoice.

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Step 1

The companies record all the transactions of a particular period in the form of a journal entry in the books of accounts. The entry is primarily recorded in the journal and then posted to the relevant ledgers.

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