The Police Department of a given city received an appropriation in the amount of $8,000,000 for the fiscal year ended June 30,2012.During the month ended July 31,2011,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 31,2011 is:

Question

Quizplus · Accepted Answer

Beginning appropriation: $8,000,000
Minus purchase orders issued: $500,000
Minus purchase orders filled: $463,000
Equals: $7,037,000

However, only $450,000 of the invoices were paid in this period. Therefore, the balance available for the police department is:

$7,037,000 (previous balance)
- $450,000 (invoices paid)
+ $480,000 (salaries paid and accrued)
= $7,067,000

Therefore, the balance available for the police department as of July 31, 2011 is $7,017,000.

The Police Department of a Given City Received an Appropriation