The Fire Department of a given city received an appropriation in the amount of $14,000,000 for the fiscal year ended June 30,2014.During the month ended July 31,2013,the following transactions occurred: (a)purchase orders were issued in the amount of $650,000; (b)purchase orders,related to (a)above,were filled in the amount of $610,000; the related invoice amount was $595,000; invoices were paid in the amount of $550,000; (c)salaries were accrued and paid in the amount of $600,000.The balance available for the fire department as of July 31,2013 is:

Question

Quizplus · Accepted Answer

The balance available for the fire department can be calculated as follows:

Appropriation amount: $14,000,000

- (a) Purchase orders issued: -$650,000

= Balance available as of July 31, 2013: $13,350,000

- (b) Purchase orders filled: -$610,000

- Invoices paid: -$550,000

= Balance available as of July 31, 2013: $12,190,000

- (c) Salaries accrued and paid: -$600,000

= Balance available as of July 31, 2013: $11,590,000

Therefore, the correct answer is C) $12,765,000.

The Fire Department of a Given City Received an Appropriation