Question

At the end of the current fiscal year, the City of Columbus General Fund pre-adjusted trial balance showed the following balances for operating and budgetary accounts and fund balance accounts. Debits Credits $6,224,000 2,776,000 $7,997,000 Appropriations Estimated Other Financing Uses Estimated Revenues Encumbrances Expenditures Other Financing Uses Revenues Budgetary Fund Balance Fund Balance-Monspendable-Inventory of Supplies Fund Balance-Unassigned 6,192,000 2,770,000 7,980,000 1,603,000 140,000 1,990,000 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, $220,000 of supplies were purchased and recorded as expenditures. These purchases are included in the final expenditures balance of $6,192,000 shown above. The physical inventory revealed a supplies balance of $152,000 at the end of the fiscal year, an increase of $12,000 from the prior year. Required a. Provide the required adjusting journal entry in the General Fund at the end of the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Answer
Journal entry
	Account Titles and Explanations	Debit	Credit
a)	Inventory of Supplies	$          12,000
	To, Non-spendable fund balance - Inventory of Supplies		$          12,000
	( To record the increase in inventory of supplies)
b)	Appropriations	$     62,24,000
	Estimated other financing users	$     27,76,000
	To, Estimated revenues		$     79,97,000
	To, Budgeted fund balance		$     10,03,000
	(To record the Budgeted fund balance)
	Revenue	$79,80,000.00
	Fund balance($61,92,000+$27,70,000)-$79,80,000	$ 9,82,000.00
	To, Expenditure		$61,92,000.00
	To, Other financing user		$27,70,000.00
	(To record the budgetory accounts)