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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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During the current year, the City of Hickory Hills issued purchase orders to various vendors in the amounts shown for the following functions of the city: General Government $ 172,200 Public Safety 310,000 Public Works 232,400 Culture and Recreation 189,700 Health and Welfare 176,100 Miscellaneous 25,400 Total $ 1,105,800 All goods ordered during the year were received at the following actual costs: General Government $ 167,800 Public Safety 309,700 Public Works 234,800 Culture and Recreation 189,700 Health and Welfare 179,300 Miscellaneous 27,200 Total $ 1,108,500 Required a.&b. Prepare journal entries in the General Fund general journal to record the issuance of purchase orders and to record the receipt of and payment for goods during the year. Also show subsidiary detail for the Encumbrances and Expenditures ledgers. (If no
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