The General Fund had the following transactions during the month of June: (1) took delivery of 10 new patrol cars that had been ordered and encumbered the previous month - the total costs were $270,000; (2) issued purchase orders totaling $25,000 for various supplies; (3) issued payroll checks in the amount of $110,000; and (4) various other short term liabilities were incurred in the amount of $1,500. Expenditures in the General Fund for the month of June would be

Question

Quizplus · Accepted Answer

The total expenditures for the General Fund during the month of June would be the sum of all transactions, which is:

$270,000 (patrol cars) + $25,000 (supplies) + $110,000 (payroll) + $1,500 (short term liabilities) = $406,500

However, we only need to consider the actual expenditures for this month, which are the transactions that were paid for during the month of June. This excludes the encumbrance from the previous month (patrol cars) and the purchase orders (supplies) that have not been paid for yet. Therefore, the answer is:

$110,000 (payroll) + $1,500 (short term liabilities) = $111,500

The closest answer choice is A) $381,500, which is incorrect because it includes the encumbrance from the previous month and the purchase orders that have not been paid for yet.

The General Fund Had the Following Transactions During the Month