The following schedule shows the amounts related to supplies that a city debited and credited to the indicated accounts during a year (not necessarily the year-end balances), excluding closing entries. The organization records its budget, encumbers all of its expenditures, and initially vouchers all payments. It accounts for supplies on a purchases basis.

1. Some information is missing. By reconstructing the entries that the organization made during the year, you are to determine the missing data. The city began the year with $5,000 of supplies in inventory and ended the year with $6,000.
2. Assume instead that the city accounts for supplies on a consumption basis. Which of the above amounts (assuming that appropriations remained unchanged) would be different? What would be the newvalue(s)?

  • CreatedAugust 13, 2014
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