At the end of the current fiscal year, the City of Columbus General Fund pre-adjusted trial balance
Question:
Debits | Credits | ||||||
Appropriations | $ | 5,824,000 | |||||
Estimated Other Financing Uses | 2,576,000 | ||||||
Estimated Revenues | $ | 7,597,000 | |||||
Encumbrances | 0 | ||||||
Expenditures | 5,792,000 | ||||||
Other Financing Uses | 2,570,000 | ||||||
Revenues | 7,580,000 | ||||||
Budgetary Fund Balance | 803,000 | ||||||
Fund Balance—Nonspendable—Inventory of Supplies | 124,400 | ||||||
Fund Balance—Unassigned | 1,986,000 | ||||||
The City of Columbus uses the purchase method of accounting for its inventory of supplies in the General Fund. The city uses a periodic inventory system in which the amount of inventory used during the year and the amount on hand at the end of the year is determined by a physical inventory. During the year, $200,000 of supplies were purchased and recorded as expenditures. These purchases are included in the balance of the final expenditure of $5,792,000 shown above. The physical inventory revealed a supply balance of $136,000 at the end of the fiscal year, an increase of $11,600 from the prior year.
Provide the required adjusting journal entry in the General Fund at the end of the year.
Provide the required journal entries in the General Fund general journal to close the operating statement and budgetary accounts at the end of the year.
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely