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steward 267 October 30, 2018 Student Name 20.Assume that the Village of Hannah uses the purchases method of inventory accounting. At the end of the year the inventory levels have increased. What entry would be made to reflect the inventory increase? A. Debit Expenditures, Credit Inventory of Supplies. B. Debit Inventory of Supplies, Credit Other Financing Sources. C. Debit Expenditures, Credit Other Financing Sources. D. Debit Inventory of Supplies, Credit Expenditures. 21.Prepare journal entries for the following transactions in the General Ledger accounts of the General Fund of the City of Grambling: (Explain each entry) a. Incurred salaries of $300,000,$280,000 of which was paid. b. A long-term note ($400,000 face value) matured. The interest of $40,000 was paid but the principal was not. Purchased computers with a cost of $45,000:$22,000 was paid; the balance is due and is expected to be paid at the end of the first quarter of the next fiscal year. c. Purchased materials for cash, $19,000. Assume purchases method of accounting for inventory. d. Received bill from the water and sewer department for services, $7,500,$4,000 was paid. e. f. Ordered but have not yet received, materials costing $70,000 g. Paid required annual contribution to pension plan, $250,000 h. Determined that the Capital Projects Fund should be reimbursed $3,000 for wages that should have been charged to General Fund departments but were paid form the Capital Projects Fund. Repaid a six-month note (face value, $50,000) and interest on the note ($2,500) Paid $75,000 to the Golf Course Enterprise Fund to cover its operating deficit for i. j. the year

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