1. A city uses the purchases method of accounting for supplies in the General Fund. How should the General Fund record a purchase of supplies?

Select one:

a. Debit Supplies inventory and credit Nonspendable fund balance

b. Debit Supplies inventory and credit Expenditures--supplies

c. Debit Supplies inventory and credit Vouchers payable

d. Debit Expenditures--supplies and credit Vouchers payable

2.

The city council decides to close the Library Special Revenue fund and send its remaining resources ($45,000 cash) to the General Fund. What journal entry should the Library Special Revenue Fund make?

Select one:

a.

Expenditures--fund closeout	45,000
Cash		45,000

b.

Cash	45,000
Transfer out to General Fund		45,000

c.

Transfer out to General Fund	45,000
Cash		45,000

d.

Transfer out to General Fund	45,000
Advance to General Fund		45,000

Answer rating: 100% (QA)

Q1 Answer d Debit Expendituressupplies and credit Vouchers payable This is because when a city uses ... View the full answer