$25.$ Several years ago, Grant County was sued by a former county employee for wrongful discharge. Although it was to be contested by the county, at the time of the lawsuit the attorneys believed that the county was likely to lose the suit and the estimated amount of the ultimate judgment would be $$100,000.$ This year, the case was finally settled with a judgment against the county of $$150,000,$ which was paid. Assuming that the county maintains its books and records in a manner to facilitate the preparation of its fund financial statements, the entry in the current year should be

a$)$ Debit Expenditures $$150,000$; Credit Cash $$150,000.$

b$)$ Debit Expenses $$150,000$; Credit Cash $$150,000.$

c$)$ Debit Expenditures $$50,000$ and Claims payable $$100,000$; Credit Cash $$150,000.$

d$)$ Debit Expenses $$50,000$ and Claims payable $$100,000$; Credit Cash $$150,000.$

$26.$ Several years ago, Grant County was sued by a former county employee for

wrongful discharge. Although it was to be contested by the county, at the time of the lawsuit the attorneys believed that the county was likely to lose and the estimated amount of the ultimate judgment would be $$100,000.$ This year, the case was finally settled with a judgment against the county of $$150,000,$ which was paid. Assuming that the county maintains its books and records in a manner to facilitate the preparation of its government$-$wide financial statements, the entry in the current year should be

a$)$ Debit Expenditures $$150,000$; Credit Cash $$150,000.$

b$)$ Debit Expenses $$150,000$; Credit Cash $$150,000.$

c$)$ Debit Expenditures $$50,000$ and Claims payable $$100,000$; Credit Cash $$150,000.$

d$)$ Debit Expenses $$50,000$ and Claims payable $$100,000$; Credit Cash $$150,000.$

$27.$ The City of Upper Falls accounts for its inventory using the purchases method. During the year the city bought $$500,000$ of supplies, for which it owed $$100,000$ at year$-$end. The city will pay for the supplies from available expendable financial resources. The entry that should be recorded in the city$$s general fund is

a$)$ Debit Expenditures $$500,000$; Credit Cash $$400,000$ and Accounts payable $$100,000.$

b$)$ Debit Expenditures $$400,000$; Credit Cash $$400,000.$

c$)$ Debit Supplies inventory $$500,000$; Credit Cash $$400,000$ and Accounts payable $$100,000.$

d$)$ Debit Supplies inventory $$400,000$; Credit Cash $$400,000.$

$28.$ Bay City uses the purchases method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $$600,000$ of supplies for use by activities accounted for in the general fund. The city used $$400,000$ of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year$-$end the appropriate account balances related to supplies expenditures and supplies inventory would be

a$)$ Expenditures $$600,000$; Supplies inventory $$200,000.$

b$)$ Expenditures $$600,000$; Supplies inventory $$0.$

c$)$ Expenditures $$400,000$; Supplies inventory $$200,000.$

d$)$ Expenditures $$400,000$; Supplies inventory $$0.$

$29.$ Shoshone County uses the consumption method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $$450,000$ of supplies for use by activities accounted for in the general fund. The city used $$300,000$ of those supplies during the year. At fiscal year$-$end, the appropriate account balances on the general fund financial statements would be

a$)$ Expenditures $$450,000$; Supplies inventory $$150,000.$

b$)$ Expenditures $$450,000$; Supplies inventory $$0.$

c$)$ Expenditures $$300,000$; Supplies inventory $$150,000.$

d$)$ Expenditures $$300,000$; Supplies inventory $$0.$

$30.$ Shoshone County uses the consumption method to account for supplies. At the

beginning of the year the city had no supplies on hand. During the year the city purchased $$450,000$ of supplies for use by activities accounted for in the general fund. The city used $$300,000$ of those supplies during the year. At fiscal year$-$end the appropriate account balances on the government$-$wide financial statements would be

a$)$ Expenses $$450,000$; Supplies inventory $$150,000.$

b$)$ Expenses $$450,000$; Supplies inventory $$0.$

c$)$ Expenses $$300,000$; Supplies inventory $$150,000.$

d$)$ Expenses $$300,000$; Supplies inventory $$0.$