The following transactions and events that occurred in Jeter City during calendar year 2019. 1. The city council adopted the following budget:
Estimated revenues and other sources:
Property taxes $2,500,000
Sales taxes 1,400,000
Use of fund balance 50,000
Total $3,950,000
Appropriations:
Streets and parkways:
Personal services $780,000
Equipment 95,000
Operating supplies 125,000
All other appropriations 2,950,000
Total $3,950,000
2. The Department of Streets and Parkways (S&P) took bids to purchase several items of equipment. The lowest bid came in at $105,000, which was greater than the amount appropriated for equipment. Jeter City’s budget director, who had the authority to interchange budgetary appropriations amounts within a department, authorized a $10,000 reduction in the department’s personal services appropriation and a corresponding increase in the equipment appropriation.
3. S&P entered into contract S&P 2019a for $105,000, charging the equipment appropriation.
4. S&P issued PO 19-1 for asphalt in the amount of $15,000, charging the operating supplies appropriation.
5. S&P received the equipment, and after inspecting all the items, approved the $105,000 invoice for payment.
6. S&P received the asphalt and approved the invoice of $15,000 for payment.
Record the transactions and events applicable to the appropriation for Street and Parkways equipment in the following appropriations ledger.
Appropriations Ledger
Appropriation: Streets and Parkways Equipment
Appropriation Encumbrances Expenditures Available
Item Cr. Dr. Cr. Dr. Appropriation
1
2
3
4
5a
5b