A low bid of $15,000 was accepted for a new vehicle for the fire chief. A purchase
Question:
A low bid of $15,000 was accepted for a new vehicle for the fire chief. A purchase orderwas issued providing for additional costs for painting and ancillary equipment (negoti-ated after the bid) prior to delivery. The estimate of additional costs is $1,400.
1.Additional purchase orders placed during the year amount to $140,000.
2.City employees are issued paychecks for the month of April. The total payroll amounts to$90,000.
3.The City received a statement from the State Treasurer that the City’s portion of the statesales tax for the first half-year is $375,000.
4.Vouchers for expenditures totaling $135,000 are approved for payment. Encumbrancesagainst these vouchers were recorded at a total of $137,000.
5.The vehicle for the fire chief was delivered and accepted. The invoice in the amount of$16,200 was approved for payment.
6.Property tax collections for the month of June amounted to $450,000.
7.The City Treasurer issued checks in payment of the vouchers totaling $135,000 and forthe invoice for the fire chief’s vehicle.
8.A purchase order previously issued for an electric typewriter (estimated price $650) wascanceled when the vendor indicated a three-month delay in delivery.
Required:
Prepare journal entries to record and account for the foregoing transactions.
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam