# Question

Blushing City had the following balance sheet accounts and amounts as of January 1, 2018:
Inventory of supplies .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . \$ 25,000
Fund balance, non-spendable .. . . . . . .. . . . . . .. . . . . . .. . . . . . . (25,000)
Fund balance, assigned . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . (18,000)
Fund balance, unassigned . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . (20,000)
Required
Prepare general fund journal entries for the following 2018 transactions:
1. Prior-period supplies encumbrances are reinstated in 2018. These are included in the 2018 budget.
2. Orders are placed for supplies inventory at an estimated cost of \$70,000.
3. All inventory ordered (including amounts encumbered last year) is received; actual invoices are for \$82,000.
4. The physical inventory of supplies at year-end is \$30,000.

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