At the end of fiscal year 2017, the City of Columbus\'s General Fund pre-adjusti
ID: 2415865 • Letter: A
Question
At the end of fiscal year 2017, the City of Columbus's General Fund pre-adjusting trial balance showed the following balances for operating and budgetary accounts and fund balance accounts.
Appropriations
The City of Columbus uses the purchases 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 are determined by a physical inventory. During the year, $260,000 of supplies were purchased and recorded as expenditures. These purchases are included in the final expenditures balance of $6,992,000 shown above. The physical inventory revealed a supplies balance of $184,000 at the end of fiscal year 2017, an increase of $12,800 from the prior year.
Provide the required adjusting journal entry in the General Fund at the end of 2017.
1.Record the adjustment to inventory of supplies in the general fund.
Provide the required journal entries in the General Fund general journal to close the operating statement and budgetary accounts at the end of 2017.
1.Record the entry to close the budgetary accounts.
2. Record the entry to close the budgetary accounts.
Record the entry to close the operating statement items.
At the end of fiscal year 2017, the City of Columbus's General Fund pre-adjusting trial balance showed the following balances for operating and budgetary accounts and fund balance accounts.
Explanation / Answer
a. 1. Record the adjustment to inventory of supplies in the general fund
Invenory of supplies Debit $12800
Reserve for Invenory of supplies Credit $12800
b. 1. Record the entry to close the budgetary accounts.
Appropriations Debit $7024000
Estimated Other Financing Uses Debit $3176000
Estimated Revenues Credit $8797000
Budgetary fund balance Credit $1403000
2. Record the entry to close the operating statement items
Revenues Debit $8780000
Budgetary Fund balance Debit $1382000
Expenditures Credit $6992000
Other Financing Uses Credit $3170000
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