6. (Treatment of inventory-purchases method) 7. The General Fund of the City of Mineral Wells shows $40,000 in supplies inventory on January 1, 2013. During the year 2013, General Fund cash is used to purchase $110,000 of supplies. On December 31, 2013, the city conducts an inventory count and finds $50,000 of supplies inventory remains. Using the purchases method of accounting for inventory, prepare the journal entries necessary to record (a) the purchase of the inventory and (b) to make the year-end adjustment to inventory. (Basic journal entries for acquisition of capital assets through issuance of debt) Prepare entries to record the following transactions related to acquisition of capital assets by a county. The county does not use encumbrance accounting. Identify the fund(s) used. a. The county issues general obligation bonds in the amount of $900,000, receiving cash for the full face amount of the bonds. The cash will be used to buy capital assets. b. The county buys a prefabricated building for $750,000, using part of the bond proceeds. The building is delivered and the invoice for the building is approved. c. The invoice approved in b. is paid. d. The General Fund transfers cash of $55,000 to another fund in anticipation of the payment of the first installment of interest ($30,000) and principal ($25,000) on the debt. e. The first installment of debt service on bonds issued in a. becomes due and payable. f. Debt service on the bonds issued in a. is paid.