Question

The Fire Department of a given city received an appropriation in the amount of $12,000,000 for the fiscal year ended June 30, 2020. During the month ended July 31, 2020, the following transactions occurred: (a) purchase orders were issued in the amount of $1,200,000; (b) purchase orders, related to (a) above, were filled in the amount of $1,000,000; the related invoice amount was $985,000; invoices were paid in the amount of $900,000; (c) salaries were accrued and paid in the amount of $675,000. The balance available for the fire department as of July 31, 2020 is:

a) 10,225,000

b) 11,440,000

c) 10,140,000

d) 10,540,000

Please explain how to get the answer.

Answer 1

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Answer is highlighted in yellow: Solution: c) 10,140,000 Answer: Explanation: Appropriation Less: Purchase order Add: (Order filled - Related invoice amount) Less: Salaries paid Balance available for the fire department as of July 31, 2020 12000000 - 1200000 15000 -675000 10140000