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 |