If the City of Sulphur bought $400,000 of supplies and used $300,000 in the current year, what is the appropriate credit (under the full accrual method) for the end of the year? O a. Supplies Inventory for $300,000 O b. Supplies expenditures for $300,000 Oc. Supplies Inventory for $400,000 Od. They should ask for an audit because that is a lot of supplies Oe. Supplies expense for $300,000

If the City of Sulphur bought $400,000 of supplies and used $300,000 in the current year, what is the appropriate credit (under the full accrual method) for the end of the year? O a. Supplies Inventory for $300,000 O b. Supplies expenditures for $300,000 Oc. Supplies Inventory for $400,000 Od. They should ask for an audit because that is a lot of supplies Oe. Supplies expense for $300,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume that a town purchases $11,000 of supplies on account toward the end of the year. A year-end audit reveals that $3,000 of the inventories remain unused. Required: Prepare the journal entry for the purchase of the inventories and the year-end adjusting entry assuming that the consumption method is used.
Assume that a town purchases $6,000 of supplies on account toward the end of the year. A year-end audit reveals that $3,500 of the inventories remain unused. Prepare the journal entry for the purchase the inventories and the year-end adjusting entry assuming that the consumption method is used.
Assume that a town purchases $11,000 of supplies on account toward the end of the year. A year-end audit reveals that $3,000 of the inventories remain unused. Required: Prepare the journal entry for the purchase of the inventories and the year-end adjusting entry, assuming that the purchases method is used.
1. Shoshone County uses the consumption method to account for supplies. At the beginning of the year the City had no supplies on hand. During the year the City purchased $600,000 of supplies for use by activities accounted for in the General Fund. The City used $400,000 of those supplies during the year. At fiscal year-end the appropriate account balances on the government-wide financial statements would be a. Expenses $600,000; Supplies Inventory $200,000. b. Expenses $600,000; Supplies Inventory $0. c. Expenses $400,000; Supplies Inventory $200,000. d. Expenses $400,000; Supplies Inventory $0. 2. Shoshone County uses the consumption method to account for supplies. At the beginning of the year the City had no supplies on hand. During the year the City purchased $600,000 of supplies for use by activities accounted for in the General Fund. The City used $400,000 of those supplies during the year. At fiscal year-end, the appropriate account balances on the General Fund financial…
On October 1, 2022, the Integrity Main Office established a sales agency in Ortigas.· The main office sent samples of its merchandise amounting to P8,400 and working fund amounting to P72,000 to be maintained on the imprest basis. The samples sent were intended to last until June 1, 2023.· During the first two months of operations, the agency transmitted to the home office sale of goods costing P291,600, but the home office was not able to fill-up 25% of the said transmitted sales order.· Collections from customers amounted to P73,941, net of 2% sales discount.· Payments made by the agency during October and November were as follows: annual rent of P57,600, advertising expense worth P5,600 and utilities amounting to P7,200.· It purchased an equipment worth P9,000 which will be depreciated at 20% per annum.· The gross profit on sales agency order is 20% of sales Net income of the agency for the two months ended November 30, 2022 is: a. P26,866 b.…
The government health center purchases an ambulance amounting to RO 12,000. Which among the following statement is true for recording the ambulance in government accounting books? a. Treated as income and shown in the statement of revenue and expenditure b. Treated as expenditure for the period and not shown in the statement of Assets and Liabilities c. Shown in the statement of assets and liabilities at its market value d. Shown in the statement of assets and liabilities at its written down value
On January 1, 2020, a city purchased office supplies for $103,000. During the year, $78,000 of these supplies were used. Required: Record the journal entries for these transactions using the purchases method (disregard the encumbrance entries).
Question 1 The City of Denton uses encumbrance accounting to control expenditures. It charges the cost of outstanding purchase commitments to expenditures in the year they are received, not in the year they are ordered. If the City had $7,000 of purchase commitments outstanding at the end of Year 1 and received those goods during Year 2 at a cost of $7,800, what would be the impact on total Fund Balance for Year 2? a. Total Fund Balance at the end of Year 2 would be $7,800 less than at the end of Year 1. b. Total Fund Balance at the end of Year 2 would be $800 less than at the end of Year 1. c. Total Fund Balance at the end of Year 2 would be $800 greater than at the end of Year 1. d. Total Fund Balance at the end of Year 2 would be same as it was at the end of Year 1. Question 2 To close Encumbrances at the end of the year which of the following entries should be made? a. Debit Encumbrances; Credit Fund Balance. b. Debit Reserve for Encumbrances; Credit…
What would be the journal entry for the following statement when converting from modified accrual to accrual accounting? The City finished a new Admin building with a final cost of $8,500,000 on June 30, 2022. Construction in progress at the beginning of the fiscal year was $6,000,000.
General City's general fund reported a supplies inventory costing $200,000 at the beginning of the fiscal year. During the year, General City purchased materials and supplies on account for $15,000,000; $900,000 remains unpaid at year-end. Materials and supplies costing $125,000 are on hand at the end of the fiscal year. Prepare the journal entries made this year using the consumption method and purchases method.
A city starts a solid waste landfill that it expects to fill to capacity gradually over a 10-year period. At the end of the first year, it is 8 percent filled. At the end of the second year, it is 19 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. Which of the following is true for the Year 2 government-wide financial statements? Choose the correct.a. Both expense and liability will be zero.b. Both expense and liability will be $110,000.c. Expense will be $110,000 and liability will be $190,000.d. Expense will be $100,000 and liability will be $200,000.
A city starts a solid waste landfill that it expects to fill to capacity gradually over a 12-year period. At the end of the first year, it is 7 percent filled. At the end of the second year, it is 17 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. Which of the following is true for the Year 2 government-wide financial statements? a. Expense will be $100,000 and liability will be $170,000. b. Both expense and liability will be $100,000. c. Expense will be $90,000 and liability will be $180,000. d. Both expense and liability will be zero.