General Citys general fund reported a supplies inventory costing $200,000 at the beginning of the fiscal year. During the year, General City purchased materials and supplies on account for $15,000,000; $900,000 remains unpaid at year-end. Materials and supplies costing $125,000 are on hand at the end of the fiscal year.

Required

Prepare the summary journal entries made this year using the consumption and purchases methods. For the purchases method, inventory levels are considered insignificant.

Consumption mehod

Description		Debit	Credit
AnswerCashExpendituresFund balance - assignedFund balance - nonspendableFund balance - unassignedInventory		Answer	Answer
AnswerCashExpendituresFund balance - assignedFund balance - nonspendableFund balance - unassignedInventory		Answer	Answer
Cash		Answer	Answer
Accounts payable		Answer	Answer
To record supplies used.
AnswerCashExpendituresFund balance - assignedFund balance - nonspendableFund balance - unassignedInventory		Answer	Answer
AnswerCashExpendituresFund balance - assignedFund balance - nonspendableFund balance - unassignedInventory		Answer	Answer
To adjust fund balance for supplies on-hand.

Purchases method

Description		Debit	Credit
AnswerCashExpendituresFund balance - assignedFund balance - nonspendableFund balance - unassignedInventory		Answer	Answer
AnswerCashExpendituresFund balance - assignedFund balance - nonspendableFund balance - unassignedInventory		Answer	Answer
Accounts payable		Answer	Answer
To record supplies used.