Question

Prepare journal entries in the General Fund of the Brownville School District. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. The District had outstanding encumbrances of $11,200 for band instruments from the previous year. It is the District’s policy to re-establish those encumbrances in the subsequent year.
2. The District ordered textbooks at an estimated cost of $57,000.
3. The band instruments arrived at an invoice price of $10,900 plus $290 shipping.
4. Textbooks originally estimated to cost $49,000 were received with an invoice price of $48,500. The remaining portion of the order is back-ordered.
5. A contract was signed with a CPA to provide the annual audit in the amount of $5,200.

Answer 1

Re establishing the Outstanding Encumbrances

Encumbrances-Band Instruments 11200

Reserve for Encumbrances outstanding(Band Instruments) 11200

Text Books-Ordered

Encumbrances-Text Books 57000

Reserve for EncumbrancesOutstanding(Text Books) 57000

Band Instruments arrived

Reserve for Encumbrances(Band Instruments) 11200

Bank 11190

General Fund 10

Text Books arrived

Reserve for Encumbrances(Text Books) 57000

Bank 48500

Text Books(Returned) 8500

Audit Expenses entered

Encumbrances-Audit Expenses 5200

Reserve for Encumbrances outstanding(Audit) 5200