A $235 purchase order for advertisements soliciting bids for the Elm Street Project was issued March 1, 2020. The bill for advertising in the amount of $230 was received March14, 2020 and a voucher for payment was issued. Required: Record the encumbrance, billing, and the Vouchers Payable liability in the Street Improvement Fund and governmental activities journals, as appropriate.

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Business

Kitty

6 December, 06:53

A $235 purchase order for advertisements soliciting bids for the Elm Street Project was issued March 1, 2020. The bill for advertising in the amount of $230 was received March14, 2020 and a voucher for payment was issued. Required: Record the encumbrance, billing, and the Vouchers Payable liability in the Street Improvement Fund and governmental activities journals, as appropriate.

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Miley Miller · Answer 1

Purchase order for advertisements soliciting bids for the Elm Street Project was issued March 1, 2020 = $235

Received bill for advertising = $230

Therefore, the Journal entry is as follows:

Advertising expense A/c Dr. $230

To cash A/c $230

(To record the encumbrance, billing, and the Vouchers Payable liability)