Note: This Is a Kaplan CPA Review Question

question 15

Multiple Choice

Note: This is a Kaplan CPA Review Question
Albee Township's fiscal year ends on June 30. Albee uses encumbrance accounting. On April 5, 20X5, an approved $1,000 purchase order was issued for supplies. Albee received these supplies on May 2, 20X5, and the $1,000 invoice was approved for payment. What journal entry should Albee make on April 5, 20X5, to record the approved purchase order?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Grain Sellers

Individuals or companies engaged in the business of selling grains either wholesale or retail.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses, including oil, meal, and as a vegetable.

Processing Facilities

Locations or sites equipped with machinery and technology for treating or handling materials or goods.

Specific Task

A particular or assigned piece of work that is meant to be completed within a set framework or instructions.