The City of Island Grove Uses Encumbrance Accounting and Its

Multiple Choice

The City of Island Grove uses encumbrance accounting and its fiscal year ends on June 30.On May 6,a purchase order was approved and issued for supplies in the amount of $6,000.Island Grove received these supplies on June 2,and the $6,000 invoice was approved for payment.What General Fund journal entry should Island Grove make on May 6,to record the approved purchase order? Debits
Credits
a)
Encumbrances
6,000
Appropriations
6,000
b)
Supplies
6,000
Vouchers Payable
6,000
c)
Encumbrances
6,000
Encumbrances Outstanding
6,000
d)
Expenditures
6,000
Encumbrances
6,000

A) Choice A
B) Choice B
C) Choice C
D) Choice D