80.2K

Verified Solution

Link Copied!

I. Inventory Journal Entries A government with a beginning inventory of supplies of $100 in its General Fund and had the following transactions during the year (all amounts are in thousands). Transactions: 1. Ordered supplies with an estimated cost of $3,150. 2. Received supplies with an actual invoice cost of $2,920. No payment was made upon receipt; $2,950 was the encumbered amount. 3. Paid $2,300 on account for supplies received in #2. 4. During the year, the inventory warehouse issued $2,900 in supplies to general government departments. 5. The ending physical inventory of General Fund supplies found $150 on hand at year end. Requirements: (30 points) Prepare the general journal entries required to account for the previous information a. Purchases method b. Consumption Method (perpetual inventory system is used)

II. Bond Issues (30 points) There are four (4) separate scenarios for bond issuances below. For each scenario, prepare the journal entry or entries for the transaction for the Capital Projects Fund and indicate the effects of each scenario on the Capital Projects Fund balance sheet equation and the General Capital Assets and General Long-Term Liabilities accounts. Scenarios: A. $3,000 in 6%, 15-year serial bonds are issued at par in a private placement. B. $4,000 in 5%, 20-year serial bonds are issued at par. Bond issue costs were $100. C. $5,000 in 4%, 25-year serial bonds are issued at 104. Bond issue costs were $150. D. $6,000 in 4%, 30-year bonds were issued at 97. Bond issue costs were $200.

Answer & Explanation Solved by verified expert

See Answer