$[4-$a$-13]$ Adjusting Entry. Because the city uses a periodic inventory system a physical count of consumable supplies was taken at year$-$end showing an ending balance of $$60,420,$ an increase of $$1,420$ during the year. The city uses the consumption method of accounting for its inventory in the General Fund and at the government$-$wide level. Recall that inventory purchases were initially recorded as expenditures in the General Fund and as expenses at the government$-$wide level. Therefore, an increase in inventory requires adjustments to the expenditure and expense accounts of the General Government function.

Required: Prepare the adjusting journal entries in the General Fund journal to adjust General Government expenditures and Inventory of Supplies, and the Fund Balance$$Nonspendable$$Inventory of Supplies and Fund Balance$$Unassigned accounts to the correct balances. In the governmental activities journal adjust the Expenses$$General Government and Inventory of Supplies accounts.

Post all journal entries to the ledgers: After reviewing all entries for accuracy, including year and paragraph numbers, post all entries to the general ledger accounts and to all subsidiary ledger accounts, by clicking on $[$Post entries$].$ Also post all entries in the governmental activities journal.