Question

The following events and transactions relating to the purchase and use of supplies inventory for Jedville Township:

1. On March 21, 2019, supplies were ordered at an estimated cost of $847,000.

2. Supplies were received on April 4, 2019, and the actual cost of $853,000 was paid in cash.

3. On December 31, 2019, $76,000 in supplies remain. (Assume there was no beginning balance.)

4. On February 23, 2020, supplies were ordered at an estimated cost of $855,000.

5. Supplies were received on March 6, 2020, and the actual cost of $866,000 was paid in cash.

6. On December 31, 2020, $60,000 in supplies remain.

Required: Prepare journal entries to record the inventory transactions in Jedville's governmental activities ledger. Record the year-end adjusting and closing entries wherever necessary.

Part C Governmental Activities Ledger

Transaction 01: Record the order of supplies

Transaction 02: Record the payment $853,000 made for supplies received

Transaction 03 (a): Record the supplies consumed $777,000 during the year 2019

Transaction 03 (b): Record the year-end closure of expenses account off $777,000

Transaction 04: Record the order of supplies

Transaction 05: Record the payment $866,000 made for supplies received

Transaction 06 (a): Record the supplies consumed $882,000 during the year 2020

Transaction 06 (b): Record the year-end closure of expenses account of $882,000

Answer 1

Solution - Transaction of - Record the e Order of supplies In this case no accounting entries are recorded because here we are only order for Purchase and no transactions are effected so only Purchase order (PO) can be prepared for memorandum Transaction on - Supplies were received on April 4, 2009 and the actual cost of $853000 was paid in cash. Requirement – Record the payment of $853000 made for Supplies received Estry Amt in Date particulars af Dr Cr Apr 4, 2009 purchase Alc. or 853,000 To cash Ale (Being goods Purchased for $853000 on cash) SHOT ON REDMI NOTE 7 MI DUAL CAMERA 853000 O

Transaction 03ra) - Record the Supplies consumed $777,000 during the year 2019 Date particulars 2f Dr Cr. Dec, 3s, Supplies expense 777000 wa A/C Dr To Purchase/supplies Ac 777,000 (Being consumption of. Supplies) 2019 Transaction 03 (6) - Record the year end closure of expenses account - off 8 777,000 Date particulars LF Dr er Dec, 31, P&L A/c Dr 777,000 2019 To Supplies expenses He 777,000 (Being transfer of Supplies expenses to profit & Loss A/C) Transaction 04:- Record the order of Supplies This case is similar to Case at transaction os, so both SHOTON REDMI NOTE 7 Same answers MIDUAL CAMERAY hequined..

Transaction 051- Record the Payment of $866,000 made for Supplies received. Entry Date particulars LF Dog March 6, Supplies AIC Dr $866,000 2020 To cash 4/0 a $866000 (Being supplies received on cash) Transaction of (a) - Record the Supplies Consumed $882,000 during the year 2020 foot in Date particulars LF DJ . Dec, 31, Supplies expense A/C 882,000 2020 TO supplies A/C 882000 (Being consump Hon of supplies) Transaction of (6) - Record the year end closure of expenses account of $882,000 Date of particulars LED Dec 31, P&L A/C Droin 882,000 To supplies expense Sun 882,000 SHOT ON REDMI NOTE 770 prohite MI DUAL CAMERA'S account 2020