A county's general fund has $1,000,000 in supplies on hand at the start of 2021. During 2021, the county purchases $40,000,000 of supplies and uses $39,800,000 of supplies.
Required
a. The general fund uses the consumption method to record supplies.
i. Prepare the adjusting entry at the end of 2021 to recognize the change in inventory balance.
ii. Calculate supplies expenditures for 2021.
b. The general fund uses the purchases method to record supplies, and reports supplies inventory on its balance sheet.
i. Prepare the adjusting entry at the end of 2021 to recognize the change in inventory balance.
ii. Calculate supplies expenditures for 2021.

Question

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The Answer of A county's general fund has $1,000,000 in supplies on hand at the start of 2021. During 2021, the county purchases $40,000,000 of supplies and uses $39,800,000 of supplies.
Required
a. The general fund uses the consumption method to record supplies.
i. Prepare the adjusting entry at the end of 2021 to recognize the change in inventory balance.
ii. Calculate supplies expenditures for 2021.
b. The general fund uses the purchases method to record supplies, and reports supplies inventory on its balance sheet.
i. Prepare the adjusting entry at the end of 2021 to recognize the change in inventory balance.
ii. Calculate supplies expenditures for 2021.

A County's General Fund Has $1,000,000 in Supplies on Hand