8. The general ledger of the Town of Baker contains the following selected accou
ID: 2498094 • Letter: 8
Question
8. The general ledger of the Town of Baker contains the following selected account balances:
Appropriations Control $800,000
Reserve for Encumbrances 50,000
Vouchers Payable 30,000
Expenditures 700,000
Baker wants to order additional goods and services before the fiscal year end. What is the
unencumbered balance of the budget that may be expended by Baker?
A. $100,000
B. $70,000
C. $50,000
D. $20,000
9. Gotham City issued a purchase order for supplies with an estimated cost of $5,000. When the
supplies were received, the accompanying invoice indicated an actual price of $4,950. What
amount should Gotham debit or credit to the budgetary fund balance account after the supplies
and invoice were received?
A. $50 Credit
B. $50 Debit
C. $4,950 Debit
D. $5,000 Debit
10. The following balances are included in the records of Bear Creek Township at April 30:
Appropriations – Supplies $10,000
Expenditures – Supplies 5,000
Encumbrances – Supply Orders 500
How much does the Township have available for additional purchases of supplies?
A. $9,500
B. $5,000
C. $4,500
D. $0
11. The following information related to property taxes levied by Burbank for 2014:
Collections during 2014 $500,000
Expected collections during the first 60 days of 2015 100,000
Expected collections during the remainder of 2015 60,000
Expected collections during January 2016 30,000
Estimated to be uncollectible 10,000
Total Levy $700,000
What amount should Burbank report for 2014 net property tax revenues?
A. $690,000
B. $600,000
C. $590,000
D. $500,000
Explanation / Answer
8. C $50000
An Reserve for Encumbrance is the name given to funds that have been reserved when a purchase requisition is finalized and encumbered. When a requisition is processed, funds are placed aside for that transaction.
9. Purchase a/c Dr $4950
Budgetary Fund balance a/c Dr $50
Ans B Debit $50
10) Appropriations-Encumbrance= $10000-$500=$9500 A Ans
11) A $690000. As collection is in cash but the estimated amount in debtor is also
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