The school district ordered the following:

(a) Record the following transactions in the General Fund General Ledger of Meadors Township using the consumption method (periodic inventory system) to account for materials, supplies, and prepayments. Record both the budgetary and actual entries.

(b) Compute the amount of expenditures to be reported in the school district General Fund statement of revenues, expenditures, and changes in fund balance.

(c) Compute the amount of nonspendable fund balance to be reported at year-end. Materials and supplies costing $90,000 were on hand at the beginning of the year. Assume that no fund balance reserve for inventory is maintained.

Transcribed Image Text:

School buses 2. Supplies Estimated Cost $225,000 112,000 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.