Inventory transactions can be derived from year-end balances The following schedule indicates selected accounts from a city's preclosing 2018 and postclosing 2017 general fund trial balances December 31, 2018 (Preclosing) December 31, 2017 (Preclosing) Expenditures Supplies Inventory Encumbrances Reserve for Encumbrances Nonspendable fund balance (Supplies) $315,000 81,000 36,000 45,000 54,000 $54,000 9,000 54,000 All the amounts shown relate only to supplies. All purchases during the year were paid in cash 1. Assume that the city uses the consumption method to account for supplies. a. Reconstruct all journal entries relating to supplies that were made in 2018 b. Make any additional entries that would be required at year-end 2018 to close the accounts 2. Assume instead that the city uses the purchases method to account for supplies. Assume also that the supplies inventory balance as reported on the preclosing December 31, 2018, balance sheet is $54,000 (not $81,000 as shown in the schedule), even though actual supplies on hand are still $81,000. (This adjustment is necessary because under the purchases method inventory is maintained throughout the year at the beginning of year balance; it is adjusted only at year-end when the closing entries are made.) a. Reconstruct all journal entries relating to supplies that were made in 2018 b. Make any additional entries that would be required at year-end 2018 to close the accounts