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:
• It purchased supplies at a cost of $22,000.
• It paid for $19,000 of the supplies.
• It used $20,000 of the supplies and therefore had $5,000 in supplies inventory at year-end.
1. Record the transactions assuming that the district uses the purchases method.
2. Record the transactions assuming that the district uses the consumption method.
3. Comment on any differences between the two as they would affect:
a. The district's general fund balance sheet
b. Its general fund statement of revenues and expenditures