CITY OF BINGHAM

2.[Para. 4a-15]The year-end balance of supplies inventory is $12,000.

Required:Adjust the inventory of supplies account in both the General Fund and governmental activities journals.At the government-wide level expenses in General Government can be reduced by $9,000 and Culture and Recreation can be reduced by $3,000.In the General Fund, fund balance should be classified as nonspendable.