1. The purchases method differs from the consumption method The Boyd School District began a recent fiscal year with $3,000 of supplies in stock. During its fiscal year, it engaged in the following transactions relating to supplies: a. It purchased supplies at a cost of $22,000. b. It paid for $19,000 of the supplies. c. It used $20,000 of the supplies, and thus had $5,000 in supplies inventory at year-end. The district restricts fund balance as required for inventory. 1. Record the transaction, assuming that the district uses the purchase method. 2.Record the transaction, assuming that the district uses the consumption method. 3. Comment on any differences between the two as they would affect the district's general fund financial statements. 2. The manner in which a transfer is accounted for depends on its nature. Prepare general fund journal entries to record the following cash transfers that a city made from its general fund on other funds. Be sure your entry reflects the nature of the transfer. 1. $4,000,000 to provide startup capital to a newly established internal service fund that will account for the city's data processing activities. 2. $50,000 to pay for data processing services provided by the data processing internal service fund. 3. $38,000 to reimburse the capital project fund for equipment rental costs that it incurred on behalf of activities accounted for in the general fund. 4. $300,000 to pay the electric utility fund for fur mnths of electric service. 5. $600,000 to enable the debt service fund to make timely payments of principal and interest on outstanding general obligation debt.