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Unformatted text preview: January 1, 20X3: Fund BalanceReserved for Encumbrances 21,000 Fund BalanceUnreserved 21,000 City Council cancels 20X2 order for equipment. E17-6 Accounting for Inventories of Office Supplies a. Consumption method of accounting for inventories: (1) Purchase of supplies: August 8, 20X2 Expenditures 3,600 Vouchers Payable 3,600 Acquire inventory of supplies. (2) Entries at end of 20X2 fiscal year: September 30, 20X2 Inventory of Supplies 2,800 Expenditures 2,800 Recognize ending inventory of supplies. Fund Balance Unreserved 2,800 Fund Balance Reserved for Inventories 2,800 Establish fund reserve for ending inventory. Fund Balance Unreserved 800 Expenditures 800 Close expenditures account....
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This note was uploaded on 10/09/2011 for the course ACC 253 taught by Professor Strimling during the Fall '11 term at Harper.
- Fall '11