E4-20 Adjusting and Closing Entries [LO 4-2, 4-3] 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 Credits $6,724,000 3,026,000 Debits Appropriations Estimated Other Financing Uses Estimated Revenues Encumbrances Expenditures Other Financing Uses Revenues Budgetary Fund Balance Fund Balance-Nonspendable-Inventory of $8,497,000 0 6,692,000 3,020,000 8,480,000 159,500 2,001,000 1,253,000 Supplies Fund Balance-Unassigned 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, $245,000 of supplies were purchased and recorded as expenditures. These purchases are included in the final expenditures balance of $6,692,000 shown above. The physical inventory revealed a supplies balance of $172,000 at the end of fiscal year 2017, an increase of $12,500 from the prior year