The Fire Department of a given city received an appropriation in the amount of $14,000,000 for the fiscal year ended June 30, 2009. During the month ended July 31, 2008, the following transactions occurred: (a) purchase orders were issued in the amount of $600,000; (b) purchase orders, related to (a) above, were filled in the amount of $570,000; the related invoice amount was $567,000; invoices were paid in the amount of $550,000; (c) salaries were accrued and paid in the amount of $610,000. The balance available for the fire department as of July 31, 2008 is:

Question

Quizplus · Accepted Answer

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

Appropriation for fiscal year 2009: $14,000,000
Less: Purchase orders issued ($600,000)
Purchase orders filled but not paid ($570,000 - $567,000) $3,000
Salaries accrued and paid ($610,000)
Balance available as of July 31, 2008: $12,793,000

Therefore, the correct answer is B, $12,793,000.

The Fire Department of a Given City Received an Appropriation