. The Police Department of a given city received an appropriation in the amount of $8,000,000 for the fiscal year ended June 30, 2015. During the month ended July 31, 2014, the following transactions occurred: (a) purchase orders were issued in the amount of $500,000; (b) purchase orders, related to (a) above, were filled in the amount of $490,000; the related invoice amount was $495,000; invoices were paid in the amount of $450,000; (c) salaries were accrued and paid in the amount of $475,000. The balance available for the police department as of July 31, 2014 is: A) $7,065,000. B) $7,025,000. C) $7,020,000. D) $6,575,000.

$7,020,000.

Explanation:

please kindly check the attached image below for a properly aligned book, don't know why this text editor is messing me up.

                  Appropriation   Encumbrances   Expenditure      Unexpended

                                                                                                         Appropriation

                                     Debit     Credit    

Budget               8000000                                         8000000  

Purchase orders              500000                            7500000  

                                             490000                        7990000  

Invoice rec/payt              45000         450000        7495000  

Payroll                                                   475000       7020000  

The balance available for the police department as of July 31, 2014 is $7020000  

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