Purchases versus Consumption Methods At the beginning of 2015, the City of Fairview reported an Unassigned Fund Balance of $555,000 and a supplies inventory balance of $175,000 During the year, Fairview purchased $225,000 in supplies and used supplies of $220,000 The city reports inventory amounts of Fund Balance Nonspendable Required Prepare the necessary journal entries under the purchases method Prepare the journal entries needed to account for the supplies under the consumption method What would the 12 31 15 balance in the Unassigned Fund Balance be under each method, assuming that the only transactions of the fund are those involving the supplies Purchases versus Consumption Methods At the beginning of 2015, the City of Fairview reported an Unassigned Fund Balance of $555,000 and a supplies inventory balance of $175,000 During the year, Fairview purchased $225,000 in supplies and used supplies of $220,000 The city reports inventory amounts of Fund Balance Nonspendable Required A Prepare the necessary journal entries under the purchases method B Prepare the journal entries needed to account for the supplies under the consumption method C What would the 12 31 15 balance in the Unassigned Fund Balance be under each method, assuming that the only transactions of the fund are those involving the supplies

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Purchases versus Consumption Methods At the beginning of 2015, the City of Fairview reported an Unassigned Fund Balance of $555,000 and a supplies inventory balance

Purchases versus Consumption Methods

At the beginning of 2015, the City of Fairview reported an Unassigned Fund Balance of $555,000 and a supplies inventory balance of $175,000. During the year, Fairview purchased $225,000 in supplies and used supplies of $220,000.The city reports inventory amounts of Fund Balance- Nonspendable.

Required:

Prepare the necessary journal entries under the purchases method.
Prepare the journal entries needed to account for the supplies under the consumption method.
What would the 12-31/15 balance in the Unassigned Fund Balance be under each method, assuming that the only transactions of the fund are those involving the supplies?

Purchases versus Consumption Methods At the beginning of 2015, the City of Fairview reported an Unassigned Fund Balance of $555,000 and a supplies inventory balance of $175,000. During the year, Fairview purchased $225,000 in supplies and used supplies of $220,000. The city reports inventory amounts of Fund Balance- Nonspendable. Required: A. Prepare the necessary journal entries under the purchases method. B. Prepare the journal entries needed to account for the supplies under the consumption method. C. What would the 12-31/15 balance in the Unassigned Fund Balance be under each method, assuming that the only transactions of the fund are those involving the supplies