# Question: a Record the following transactions in the General Fund General

(a) Record the following transactions in the General Fund General Ledger of a school district that uses the purchases method to account for materials, supplies, and prepayments. Record both the budgetary and actual entries. Assume that materials and supplies costing \$37,000 were on hand at the beginning of the year.
(b) What amount of nonspendable fund balance should be reported at year end?
1. The school district ordered the following:
Estimated Cost
School buses—2 . . . . . . . . . . . . . . . . . . . . . . . . . . . \$225,000
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,000
2. The school received one of the buses at an actual cost of \$120,000, which equaled the estimated amount.
3. The school received most of the supplies ordered (estimated cost, \$95,000). The actual cost was \$95,800.
4. The school paid \$93,000 of the vouchers payable for the supplies.
5. At year end, the school had supplies on hand costing \$22,000.

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