Question
At the end of fiscal year 2017, the City of Columbus's General Fund pre-adjusting trial balance showed the following balances for operating and budgetary accounts
At the end of fiscal year 2017, the City of Columbus's General Fund pre-adjusting trial balance showed the following balances for operating and budgetary accounts and fund balance accounts. |
Debits | Credits | ||||||||
Appropriations
| $ | 7,024,000 | |||||||
Estimated Other Financing Uses | 3,176,000 | ||||||||
Estimated Revenues | $ | 8,797,000 | |||||||
Encumbrances | 0 | ||||||||
Expenditures | 6,992,000 | ||||||||
Other Financing Uses | 3,170,000 | ||||||||
Revenues | 8,780,000 | ||||||||
Budgetary Fund Balance | 1,403,000 | ||||||||
Fund Balance-Nonspendable-Inventory of Supplies | 171,200 | ||||||||
Fund Balance-Unassigned | 2,007,000 | ||||||||
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, $260,000 of supplies were purchased and recorded as expenditures. These purchases are included in the final expenditures balance of $6,992,000 shown above. The physical inventory revealed a supplies balance of $184,000 at the end of fiscal year 2017, an increase of $12,800 from the prior year. |
Required | |||
a. | Provide the required adjusting journal entry in the General Fund at the end of 2017. 1.Record the adjustment to inventory of supplies in the general fund.
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