Question: The following information was abstracted from the accounts of the General Fund of the City of Rome after the books had been closed for the fiscal year ended June 30, 2012.
During the year, purchase orders were placed in the amount of $1,070,000. These purchase orders were filled in the amount of $1,000,000 leaving $70,000 open at year-end. There were no transfers into the General Fund, but one transfer out. Prepare journal entries to record the budgeted and actual transactions for the fiscal year ended June 30, 2012. Include closing entries.