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

Answer :

Date	Accounts Titles and Explanation	Debit	Credit
	Re establishing the outstanding encumbrances	-	-
	Encumbrance - Band instruments	11200	-
	Reserve for encumbrance outstanding (Band instruments)	-	11200
	Text Books - Ordered	-	-
	Encumbrances - Tax books	57000	-
	Reserve for encumbrances outstanding (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