On October 1, 2019, the City of Highland placed an order with Ajax Sand &...
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Accounting
On October 1, 2019, the City of Highland placed an order with Ajax Sand & Gravel Co. for 1,000 tons of cinders to be spread upon Highlands streets during winter storms. The estimated cost of the cinders was $10 per ton, delivered. Ajax delivered 800 tons of cinders to Highlands road maintenance yard on October 20, along with an invoice for $8,000. Ajax delivered the remaining 200 tons of cinders on November 1, along with an invoice for $2,000. Prepare the General Fund journal entries necessary on October 1, October 20, and November 1, 2019. Classify the expenditures as Road maintenance.
10/01
To record encumbrance.
10/20
To record partial reversal of encumbrance.
To record expenditure.
11/01
To record partial reversal of encumbrance.
To record expenditure.
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