Accounting for Governmental Operating Activities ...

City place purchase orders for supplies totaling $420,000, the entry would be: General Fund: Dr. Cr. Encumbrances—2011 420,000 Reserve for Encumbrances—2011 420,000 Encumbrances Subsidiary Ledger: General Government 80,000 Public Safety 210,000 Public Works 130,000 Encumbrance Accounting (Cont’d) ................
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