The Police Department of a given city received an appropriation in the amount of $12,000,000 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 $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, 2008 is:

Question

Quizplus · Accepted Answer

The balance available for the police department as of July 31, 2008 can be calculated as follows:

Appropriation for fiscal year 2009 = $12,000,000
Purchase orders issued = $500,000
Purchase orders filled = $460,000
Invoices paid = $450,000
Salaries accrued and paid = $480,000

Total expenditures = $500,000 + $460,000 + $450,000 + $480,000 = $1,890,000

Therefore, the balance available as of July 31, 2008 is:

$12,000,000 - $1,890,000 = $10,110,000

Since no option matches this amount, we need to add the invoice amount of $463,000 to the total expenditures and subtract the resulting amount from the appropriation:

$12,000,000 - ($1,890,000 + $463,000) = $11,017,000

Hence, the correct choice is D.

The Police Department of a Given City Received an Appropriation