The General Fund of the City of Mineral Wells shows $40,000 in supplies inventory on January 1, 2019. During the year 2019, General Fund cash is used to purchase $110,000 of supplies. On December 31, 2019, the city conducts an inventory count and finds $50,000 of supplies inventory remains. Using the purchases method of accounting for inventory, prepare the journal entries necessary to record (a) the purchase of the supplies and (b) to make the year-end adjustment to inventory.

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The Answer of The General Fund of the City of Mineral Wells shows $40,000 in supplies inventory on January 1, 2019. During the year 2019, General Fund cash is used to purchase $110,000 of supplies. On December 31, 2019, the city conducts an inventory count and finds $50,000 of supplies inventory remains. Using the purchases method of accounting for inventory, prepare the journal entries necessary to record (a) the purchase of the supplies and (b) to make the year-end adjustment to inventory.

The General Fund of the City of Mineral Wells Shows