The Police Department of a given city received an appropriation in the amount of $8,000,000 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 $500,000; (b)purchase orders,related to (a)above,were filled in the amount of $460,000; the related invoice amount was $463,000; invoices were paid in the amount of $450,000; (c)salaries were accrued and paid in the amount of $480,000.The balance available for the police department as of July 31,2013 is:

Question

Quizplus · Accepted Answer

To find the balance available for the police department as of July 31, 2013, we need to calculate the total amount of appropriations used and subtract it from the original appropriation.

Amount of appropriations used:
Purchase orders issued: $500,000
Purchase orders filled: $460,000
Invoices paid: $450,000
Salaries accrued and paid: $480,000

Total appropriations used: $500,000 + $460,000 + $450,000 + $480,000 = $1,890,000

Balance available: 
Original appropriation: $8,000,000
Appropriations used: $1,890,000
Balance available: $8,000,000 - $1,890,000 = $7,110,000

Therefore, the correct answer is B) $7,017,000.

The Police Department of a Given City Received an Appropriation