twelve vehicles were delivered as scheduled and payments of 264 000 were made upon d 634255
Carlson City’s fiscal year ends December 31. On August 1, the city issued a purchase order for new vehicles to be delivered at the rate of two per month beginning October 15. Twelve vehicles were delivered as scheduled and payments of $264,000 were made upon delivery. If these were the only transactions made by the city, which of the following balances would appear on the balance sheet as of December 31?
a. |
Encumbrances |
$132,000 |
Reserve for encumbrances |
132,000 |
|
b. |
Fund balance |
$132,000 |
Reserve for encumbrances |
132,000 |
|
c. |
Reserve for encumbrances |
$264,000 |
Fund balance |
264,000 |
|
d. |
Encumbrances |
$264,000 |
Reserve for encumbrances |
264,000 |