Eat Hearty (EH)is a Non-Profit Organization That Has Grown to Be

Eat Hearty (EH)is a non-profit organization that has grown to be quite large in the area. EH operates 30 food banks in multiple locations throughout the province and has moved to a decentralized organizational structure. All of the funding is received by the head office and then each location is allocated a fixed amount of funds that can be used over the year for local expenses. Local expenses are at the discretion of the local managers. The Board has decided to change its method of accounting to keep better track of costs at these various locations and better manage the budget. The Board has decided to implement a new budgeting and encumbrance accounting system.
Required:
In October, 2013, EH issued a purchase order for $70,000 to have printed and delivered 100,000 pamphlets to be distributed to households over the next 6 months. In December, 2013, the pamphlets were received along with an invoice for $67,800. Prepare the journal entries to record the journal entries for October and December, 2013 using encumbrance accounting.