1. Bloomfield Township orders services in the amount of $ 5,000,000 and records the order as an encumbrance . When the services are provided , the invoice in the amount of $ 4.998,000 .

2. Bloomfield's general fund has in supplies on hand at the start of the year . During the current year , the town purchases $ 4,000,000 of supplies for cash and uses of supplies . Prepare journal entries to record these events including any year - end adjusting entries, if;

a . The general fund uses the consumption method to record supplies

. b . The general fund uses the purchases method to record supplies , assuming the amount of ending inventories is significant amount of beginning Inventories was reported in the balance sheet

Required : Prepare journal entries and closing entries relating to the above general fund Lansactions