During the month of July, the Town of Lynton recorded the following information related to purchases: Amount of Purchase Order Actual Cost $ 553,000 $ 493,000 723,013 466,480 57,320 $1,739,813 General government Public safety Public works Culture and recreation Total purchase orders and invoices 738,200 957,845 57,270 $2,306,315 At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received the same as the actual cost of the items. Required a. (1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts. b. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (2) Show entries for the subsidiary ledger accounts.

During the month of July, the Town of Lynton recorded the following information related to purchases: Amount of Purchase Order Actual Cost $ 553,000 $ 493,000 723,013 466,480 57,320 $1,739,813 General government Public safety Public works Culture and recreation Total purchase orders and invoices 738,200 957,845 57,270 $2,306,315 At the end of the month, several purchase orders remained outstanding for all functions except Culture and Recreation. Public Works in particular had a large amount of purchase orders outstanding because it had put in an order for delivery of paving materials to be delivered over the months of July and August. For all but Culture and Recreation, consider the amounts for purchase orders received the same as the actual cost of the items. Required a. (1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts. b. (1) Prepare the general journal entries to record the receipt of the goods ordered at the actual cost shown and the related payable. (2) Show entries for the subsidiary ledger accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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