During the month of July, the Town of Lynton recorded the following information related to...
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Accounting
During the month of July, the Town of Lynton recorded the following information related to purchases:
Amount of Purchase Order
Actual Cost
General government
$
550,000
$
490,000
Public safety
735,200
720,013
Public works
954,845
463,480
Culture and recreation
54,270
54,320
Total purchase orders and invoices
$
2,294,315
$
1,727,813
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
(1) Prepare the general journal entry to record the issuance of the purchase orders. (2) Show entries in subsidiary ledger accounts.
(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.
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