(Effect of transactions on balance of appropriation available for spending) Assume the Parks…

  (Effect of transactions on balance of appropriation available for spending) Assume the Parks Department in E3-11 had received an appropriation for supplies in the amount of $35,000. After processing the journal entries in E3-11, calculate the balance left in the appropriation for spending. E3-11 :  E3-11 (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 $8,000 and purchase order 961 for supplies in the amount of $6,000. 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 $8,300. The supplies, including the additional quantities, were accepted, and a voucher was prepared for $8,300. 3. Received all the supplies ordered on purchase order 961, together with an invoice for $5,800. The supplier said that production costs were less than anticipated, and it was passing the lower cost on to Radnor. A voucher for $5,800 was prepared. 4. The voucher for $8,300 was paid.

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