Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 30

Accounting for expenditures and encumbrances. Blushing City had the following balance sheet accounts and amounts as of January 1, 2018:
Prepare general fund journal entries for the following 2018 transactions:
1. Prior-period supplies encumbrances are reinstated in 2018. These are included in the 2018 budget.
2. Orders are placed for supplies inventory at an estimated cost of $70,000.
3. All inventory ordered (including amounts encumbered last year) is received; actual invoices are for $82,000.
4. The physical inventory of supplies at year-end is $30,000.