Inventory transaction amounts during the year can be derived from year-end balances.

The following amounts relate to a city’s supplies inventory for the year ended December 31, 2013:

Inventory on hand, 1/1/2013............................................ $054,000

Expenditures..................................................................... 315,000

Inventory on hand, 12/31/13............................................. 81,000

All purchases during the year were paid in cash.

Prepare journal entries to record the supplies purchased and consumed during the year.

1. Assume the city used the consumption method.

2. Assume the city used the purchases method.