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.